Commodities » Industrial Metals

Industrial metals (copper, aluminium, nickel, etc.) daily review (March 20, 2013)

Contributed by Angel Broking

The base metals pack traded on a negative note on the back of worries over Cyprus bailout. Further, weak global market sentiments coupled with strength in DX added downside pressure on the prices. Additionally, mixed LME inventory data acted as a negative factor.

However, rise in building permit data along with positive housing starts data cushioned sharp decline in prices.

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


Copper

Copper, the l eader of the base metal pack decreased by 0.8 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 0.6 percent which stood at 547,025 tonnes kept the prices under pressure

However, favourable economic data from US cushioned sharp downfall in prices. The red metal touched an intra-day low of $7486.25/tonne and closed at $7510/tonne yesterday's trading session.

On the domestic front, prices ended on flat note and closed at Rs. 412.8/kg on Tuesday after touching an intra-day low of Rs 411.90/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 negative note on the back of expectation of worries over Cyprus bailout. Further, weak global market sentiments coupled with strength in DX will add downside pressure. Investors will keep an eye on US FOMC Economic projections and FOMC statement. On MCX due to depreciation in the Indian rupee sharp decline in the prices will be cushioned.