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Commodities Industrial Metals

Industrial metals (copper, aluminium, nickel, etc.) daily review (March 14, 2014)

March 14, 2014, Friday, 05:15 GMT | 01:15 EST | 09:45 IST | 12:15 SGT
Contributed by Angel Broking


Base Metals

Base metals on the LME traded on a negative note yesterday apart from Nickel as a result of growth concerns in Chinese economy, after decline in industrial production data. Further, weak global market sentiments along with strength in the DX acted as a negative factor.

However, favorable retail sales and jobless claims data from US in yesterday’s trade failed to provide respite to fall in the prices.

In the Indian markets, base metals traded lower due to Rupee appreciation.


Copper

LME Copper prices declined around 1.5 percent yesterday taking cues from decline in China’s industrial production thereby increasing growth concerns in world’s second largest economy. Further, strength in the DX along with weak market sentiments exerted downside pressure on the prices.

However, favorable retail sales and jobless claims data from the US coupled with decline in LME copper inventories by 0.9 percent cushioned sharp fall in the prices. The red metal touched an intra-day low of $6398.25/tonne before closing at $6400/tonne in yesterday’s trading session.

MCX Copper prices traded lower by 0.8 percent yesterday and closed at Rs.399.60/kg on Thursday.


Outlook

We expect base metals prices to trade on a negative note today on the back of concerns of economic growth in Chinese economy. Further, weak market sentiments due to geopolitical tensions between Ukraine and Russia coupled with strength in the DX will exert downside pressure on the prices.

However, estimates of positive consumer sentiments data from the US in the evening session will restrict sharp downside in the prices.

In the Indian markets, depreciation in the Rupee will cushion downside movement in the prices.