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Commodities Industrial Metals

Industrial metals (copper, aluminium, nickel, etc.) daily review (March 28, 2014)

March 28, 2014, Friday, 05:37 GMT | 02:37 EST | 11:07 IST | 13:37 SGT
Contributed by Angel Broking


Base Metals

Base metals on the LME apart from Nickel traded on a positive note yesterday taking cues from favorable retail sales data from UK coupled with unexpected fall in unemployment claims from the US.

However, strength in the DX along with rise in risk aversion in the market sentiments in the latter part of capped sharp gains. Also, overall mixed economic data from the US coupled with mixed trend in inventories acted as negative factors.

In the Indian markets, base metals traded higher owing to Rupee depreciation.


Copper

LME Copper prices rose by 0.8 percent yesterday on the back of expectations that demand will pick up in the world’s biggest consumer, China given lower prices and increasing order book. Also, concerns that global supply will be lesser than forecasted coupled with 0.4 percent decline in inventories supported gains.

Further, strength in the DX along with weak market sentiments and unfavorable GDP and home sales data from the US could not restrict sharp gains. The red metal touched an intra-day high of $6584.75/tonne and closed at $6565.8/tonne on Thursday.

MCX Copper prices jumped by 1 percent yesterday on account of Rupee depreciation and closed at Rs.401.3/kg after touching an intra-day high of Rs.402.75/kg.


Outlook

We expect LME copper prices to trade on a positive note today on the back of upbeat market sentiments coupled with weakness in the DX.

Also, estimates of positive Revised UoM Consumer Sentiment data from the US in the evening session coupled with expectations of rise in demand in China will support gains in prices.

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