Commodities » Industrial Metals

Industrial metals (copper, aluminium, nickel, etc.) daily review (March 19, 2013)

Contributed by Angel Broking

The base metals pack traded on a negative note on the back of worries over Cyprus bailout as the European finance minister decided to levy special taxes on the bank deposits of Cyprus. Further, weak global market sentiments coupled with strength in DX added downside pressure on the prices.

Additionally, rise in LME inventories, except Lead also acted as a negative factor for the base metal prices.

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


Copper

Copper, the leader of the base metal pack decreased by 2.5 percent in yesterday's trade on the back of worries over Cyprus bailout. Further, weak global market sentiments coupled with strength in DX added downside pressure.

Additionally, sharp rise in LME Copper inventories by 3.4 percent which stood at 543,925 tonnes kept the prices under pressure. The red metal touched an intra-day low of $7545.75/tonne and closed at $7567/tonne yesterday's trading session.

On the domestic front, prices fell by 2.6 percent and closed at Rs. 412.7/kg on Monday after touching an intra-day low of Rs 412.2/kg. Depreciation in the Indian Rupee prevented sharp 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 expectation of positive economic data from US. Further, optimistic global market sentiments coupled with weakness in DX will support prices to gain strength. However, worries over Cyprus bailout, expectation of negative Industrial production data from Italy and decline in German ZEW economic sentiments may cap sharp gains in prices.