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Commodities Industrial Metals

Industrial metals (copper, aluminium, nickel, etc.) daily review (March 12, 2014)

March 12, 2014, Wednesday, 05:47 GMT | 01:47 EST | 10:17 IST | 12:47 SGT
Contributed by Angel Broking


Base metals on the LME traded on a negative note yesterday on the back of concerns of slowdown in growth in China, the biggest consumer. Also, mixed global market sentiments along with unfavorable economic data from Euro Zone exerted downside pressure on prices.

Further, decline in LME inventories along with favorable data from UK could not restrict sharp downside.

In the Indian markets, base metals traded lower but Rupee depreciation cushioned sharp fall in prices.


Copper

LME Copper prices slumped by 3 percent yesterday taking cues from sustained growth concerns in the world’s biggest consumer, China. Additionally, weak trade balance data from Euro Zone along with rise in risk aversion in the markets acted as a negative factor.

Further, decline in LME inventories by 2.9 percent to 257,600 tonnes along with favorable industrial and manufacturing data from UK could not restrict sharp downside movement. The red metal touched an intra-day low of $6469.75/tonne before closing at $6483/tonne on Monday.

MCX Copper prices plunged by 2.7 percent yesterday and touched an intra-day low of Rs.400.3/kg before closing at Rs.402.7/kg in the last trading session.


Outlook

We expect base metals prices to trade on a negative note today on the back of weak market sentiments coupled with strength in the DX. Also, concerns regarding China’s growth will continue to act as a negative factor.

However, estimates of positive Industrial Production data from Euro Zone will restrict sharp downside or reversal in prices.

In the Indian markets, depreciation in the Rupee will support an upside in the prices.

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