Commodities » Industrial Metals

Industrial metals (copper, aluminium, nickel, etc.) daily review (March 14, 2013)

Contributed by Angel Broking

The base metals pack traded on a negative on the back of mixed global market sentiments coupled with strength in the DX.

However, sharp downside in the prices was cushioned on account of decline in LME inventories apart from Copper along with favourable core retail sales and retail sales data from the US.

On the MCX, depreciation in the Indian Rupee cushioned sharp fall in the prices.


Copper

Copper, the leader of the base metal pack declined by 0.5 percent in yesterday's trade on the back of rise in LME copper inventories by 0.5 percent which stood at 520,500 tonnes, mixed global market sentiments a long with strength in the DX.

However, sharp downside in the prices was cushioned on account of positive retail sales and core retail sales data from the US. The red metal touched an intra-day low of $7768.0/tonne and closed at $7790.5/tonne yesterday's trading session.

On the domestic front, prices fell by 0.1 percent and closed at Rs. 427.70/kg on Wednesday after touching an intra-day low of Rs. 426.80/kg. Depreciation in the Indian Rupee prevented further fall in the prices on the MCX.


Outlook

In the intra-day, we expect base metals prices to trade on the positive note on the back of optimistic global market sentiments, favourable core retail sales and retail sales data from US in yesterday's trade along with weakness in DX. However, expectation of negative job data from US along with worries over UK's economic condition may cap sharp gain in the prices.

In the Indian markets, Appreciation in the Indian Rupee will cap sharp upside movement in the prices on the MCX.