Commodities » Industrial Metals

Industrial metals (copper, aluminium, nickel, etc.) daily review (March 21, 2013)

Contributed by Angel Broking

The base metals pack traded on a positive note on the back of optimistic global market sentiments coupled with weakness in DX. Further, US Federal Reserve decision to continue its bond buying program also supported prices to trade green. Additionally, negative LME inventory data except copper acted as a positive factor. However, unfavourable economic data from UK prevented sharp gains in prices.

On the MCX, depreciation in the Indian Rupee supported prices to trade positive.


Copper

Copper, the leader of the base metal pack increased by 1.5 percent in yesterday's trade on the back of optimistic global market sentiments coupled with weakness in DX. Further, US Federal Reserve decision to continue its bond buying program supported prices to trade on positive note. Additionally, Cyprus government is looking forward to the alternatives to avoid banking collapse in the nation also supported prices to gain strength.

However, sharp rise in LME Copper inventories by 0.7 percent which stood at 550,825 tonnes prevented sharp upside movement in the prices. The red metal touched an intra-day high of $7633.75/tonne and closed at $7619/tonne yesterday's trading session.

On the domestic front, prices ended on positive note and closed at Rs. 417.2/kg on Wednesday after touching an intra-day high of Rs 418.2/kg. Depreciation in the Indian Rupee supported prices to trade green.


Outlook

In the intra-day, we expect base metals prices to trade on the positive note on the back of upbeat global market sentiments coupled with weakness in DX. Further, US Federal Reserve decision to continue with its bond buying program will support prices to trade green. Additionally, positive HSBC manufacturing data from China along with expectation of favourable economic data from major global economies will support prices to trade on a positive note. Appreciation in the Indian Rupee will cap sharp gains in the prices on the MCX.