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Commodities Industrial Metals

Industrial metals (copper, aluminium, nickel, etc.) daily review (May 07, 2014)

May 7, 2014, Wednesday, 04:27 GMT | 23:27 EST | 08:57 IST | 11:27 SGT
Contributed by Angel Broking


Base metals on the LME traded on a mixed note yesterday taking cues from rise in risk aversion in the markets owing to mounting civil war tensions between Russia and Ukraine and more than estimated deficit in trade balance from the US.

While on the other hand, positive economic data from the Euro Zone along with weakness in the DX supported gains. Also, decline in LME inventories acted as a positive factor.

MCX base metals traded on a mixed note yesterday but Rupee appreciation restricted sharp gains.


Copper

LME Copper prices fell by 0.4 percent yesterday taking cues from more than forecasted US trade deficit along with mixed global market sentiments.

However, sharp losses were cushioned on the back of around 2 percent decline in inventories to 225,425 tonnes couples with favorable economic data from Euro Zone. The red metal touched an intra-day low of $6617.25/tonne and closed at $6700/tonne on Tuesday.

MCX Copper prices declined by 0.2 percent and touched an intra-day low of Rs.408.6/kg before closing at Rs.408.9/kg on Tuesday.


Outlook

We expect LME Copper prices to trade mixed today on the back of mixed market sentiments along with estimates of mixed economic data from Euro Zone that will exert downside pressure on prices.

While on the other hand, weakness in the DX will cushion sharp downside or even reversal in prices.

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