Commodities » Industrial Metals

Industrial metals (copper, aluminium, nickel, etc.) daily review (March 22, 2013)

Contributed by Angel Broking

The base metals pack traded on a mixed note on the back of rise in China's manufacturing PMI, positive US Manufacturing PMI along with rise in US existing home sales data. Further, favourable Philly Fed manufacturing Index from US coupled with weakness in DX supported prices to gain strength. However, in the later part of the trade due to worries over Cyprus bailout and unfavourable economic data from Europe along with weak global markets sentiments prices remained under pressure.

On the MCX, appreciation in the Indian Rupee added downside pressure.


Copper

Copper, the leader of the base metal pack decreased by 0.1 percent in yesterday's trade on the back weak global market sentiments, worries over Cyprus bailout along with unfavourable economic data from Europe . Further, rise in unemployment claims from US added downside pressure. Additionally, sharp rise in LME Copper inventories by 1.2 percent which stood at 557,450 tonnes kept prices under pressure.

However, po sitive US Manufacturing PMI data coupled with rise in US existing home sales data cushioned sharp downfall in prices. Further, favourable Philly Fed manufacturing Index from US along with weakness in DX also prevented sharp decline in prices. The red metal touched an intra-day high of $7566.25/tonne and closed at $7609.3/tonne yesterday's trading session.

On the domestic front, prices ended on negative note and closed at Rs. 416.30/kg on Thursday after touching an intra-day low of Rs 414.1/kg. Appreciation in the Indian Rupee added Downside pressure.


Outlook

In the intra-day, we expect base metals prices to trade on the positive note on the back of positive US Manufacturing PMI along with rise in US existing home sales data in the yesterday's trade. However, worries over Cyprus bailout, strength in DX along with weak global market sentiments cap sharp gains in the prices. In the Indian markets, depreciation in the Indian Rupee may support prices to trade on positive side.