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Commodities Industrial Metals

Industrial metals (copper, aluminium, nickel, etc.) daily review (March 19, 2014)

March 19, 2014, Wednesday, 05:58 GMT | 01:58 EST | 10:28 IST | 12:58 SGT
Contributed by Angel Broking


Base Metals

Base metals on the LME traded on a positive note yesterday as a result of ease of geopolitical tensions between Ukraine and Russia which supported an upside in the prices. Further, upbeat market sentiments in later part of the trade acted as a positive factor. Favorable economic data from US continued with positive movement in the prices.

However, mixed LME inventories, strength in the DX along with weak economic sentiments data from Euro Zone capped sharp gains in the prices.

In the Indian markets, base metals traded on a positive note due to Rupee depreciation.


Copper

LME Copper prices rose around 0.1 percent yesterday taking cues from favorable building permits and housing starts data from the US. Further, upbeat market sentiments in later part of the trade supported an upside in the prices.

However, sharp rise in LME copper inventories by 7.3 percent coupled with unfavorable economic sentiments data from Euro Zone capped sharp gains in the prices. The red metal touched an intra-day high of $6570.0/tonne before closing at $6486.0/tonne in yesterday’s trading session.

MCX Copper prices traded higher by 0.1 percent yesterday and closed at Rs.402.10/kg on Tuesday.


Outlook

We expect base metals prices to trade on a mixed note today as investors remain cautious ahead of the US Federal Reserve meeting. Further, mixed market sentiments coupled with strength in the DX will exert downside pressure in the prices. Further, expectations of unfavorable employment data from UK will act as a negative factor. While on the other hand, rise in building permits and housing starts data from the US in the yesterday’s trade will act as a positive factor..

In the Indian markets, movement in the Rupee will provide direction to the prices.