Commodities » Industrial Metals

Industrial metals (copper, aluminium, nickel, etc.) daily review (March 15, 2013)

Contributed by Angel Broking

The base metals pack traded on a positive note on the back of rise in risk appetite in the global market sentiments, unexpected decline in US unemployment claims along with weakness in the DX.

However, sharp upside in the prices was capped as a result of mixed LME inventories coupled with deficit in the US current account.

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


Copper

Copper, the I eader of the base metal pack increased by 0.2 percent in yesterday's trade on the back of upbeat global market sentiments, unexpected fall in the US jobless claims along with weakness in the DX.

However, sharp upside in the prices was capped on account of rise in LME Copp er inventories by 0.3 percent which stood at 522,250 tonnes. The red metal touched an intra-day high of $7831.25/tonne and closed at $7804.30/tonne yesterday's trading session.

On the domestic front, prices fell by 0.3 percent and closed at Rs. 426.30/kg on Thursday after touching an intra-day low of Rs 425.9./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 higher on the back of optimistic global market sentiments along with expectation of favourable economic data from US. Further, positive job data from US in yesterday's trade coupled with weakness in DX will also support upside in prices.

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