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Commodities Industrial Metals

Industrial metals (copper, aluminium, nickel, etc.) daily review (March 20, 2014)

March 20, 2014, Thursday, 06:36 GMT | 02:36 EST | 11:06 IST | 13:36 SGT
Contributed by Angel Broking


Base Metals

Base metals on the LME traded on a positive note yesterday as a result of favorable employment data from UK increasing the expectations of demand from the country.

However, mixed LME inventories, strength in the DX along with weak market sentiments after QE tapering by the US Federal Reserve capped sharp gains in the prices.

In the Indian markets, base metals traded on a positive note but Rupee appreciation capped sharp gains in the prices.


Copper

LME Copper prices rose around 1.4 percent yesterday taking cues from decline in LME copper inventories by 0.7 percent to 269,725 tonnes.

However, weak market sentiments due to another round of QE tapering by the US Federal Reserve along with strength in the DX failed to add downside pressure to the prices. The red metal touched an intra-day high of $6584.50/tonne before closing at $6580.0/tonne in yesterday’s trading session.

MCX Copper prices traded higher by 1.1 percent yesterday and closed at Rs.406.50/kg on Wednesday.


Outlook

We expect base metals prices to trade on a mixed note today as weak market sentiments due to another round of QE tapering by the US Federal Reserve coupled with strength in the DX will exert downside pressure in the prices.

While on the other hand, expectations of favorable industrial orders data from UK will act as a positive factor. Further, forecast for upbeat industrial orders data from the UK along with estimates of rise in existing home sales and Philly fed manufacturing index from the US in the evening session will support an upside in the prices.

In the Indian markets, depreciation in the Rupee will act as a positive factor for the prices.