Commodities » Industrial Metals

Industrial metals (copper, aluminium, nickel, etc.) daily review (March 18, 2013)

Contributed by Angel Broking

The base metals pack traded on a positive note except Zinc in the last week on the back of rise in risk appetite in the global market sentiments, favourable economic data from US and Euro Zone along with w eakness in the DX.

However, sharp upside in the prices was capped as a result of rise in LME inventories coupled with decline in consumer sentiments of the US.

On the MCX, appreciation in the Indian Rupee added downside pressure on the prices.


Copper

Copper, the leader of the base metal pack increased by 0.1 percent in the last w eek on the back of upbeat global market sentiments, positive economic data from US and Euro region along with weakness in the DX.

However, sharp upside in the prices was capped on account of rise in LME Copper and Shanghai inventories. The red metal touched a high of $7883.0/tonne in the last week and closed at $7758.50/tonne in the last trading session of the week.

On the domestic front, prices fell by 0.4 percent on the back of appreciation in the Indian Rupee and closed at Rs. 423.55/kg on Friday after touching a low of Rs 421.65/kg in the prior week.

Copper Inventories

LME copper inventories gained by 3.2 percent in the last week and stood at 525,825 tonnes as on 15th March, 2013 as against 509,425 tonnes as on 8th March, 2013.

Copper inventories in the warehouse monitored by the Shanghai rose by 2.9 percent and stood at 231,872 tonnes for the week ending on 15th March, 2013.


Outlook

In the intra-day, we expect base metals prices to trade on the negative note on the back of rise in risk aversion in the global market sentiments coupled with strength in DX. Worries over Cyprus bailout may add further downside pressure on the prices. In the Indian markets, depreciation in the Indian rupee may cushion sharp downfall in prices.