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Commodities Industrial Metals

Industrial metals (copper, aluminium, nickel, etc.) daily review (May 19, 2014)

May 19, 2014, Monday, 07:10 GMT | 02:10 EST | 10:40 IST | 13:10 SGT
Contributed by Angel Broking


Base Metals

Base metals on the LME traded on a positive note in the last week taking cues from positive inflation and manufacturing data from the US. Also, news of necessary measures by the Chinese government to strengthen financial markets coupled with decline in inventories acted as positive factors.

However, weak industrial production data from China coupled with mixed economic data from Euro Zone capped sharp gains. Further, weak consumer sentiments data from the US along with mixed market sentiments exerted downside pressure on prices.

MCX base metals traded lower last week on the back of Rupee appreciation.


Copper

LME Copper prices jumped by 1.8 percent last week on the back of signs of necessary measures by the Chinese Government to revive commodity markets. Also, positive manufacturing data from the US along with a whopping 10.45 percent decline in inventories supported gains.

However, decline in industrial production data from the US and China coupled with mixed economic data from Euro Zone acted as negative factors. Also, strength in the DX along with rise in risk aversion in the markets exerted downside pressure. The red metal touched a weekly high of $6940/tonne and closed at $6874/tonne on Friday.

MCX Copper prices declined by 0.4 percent and touched a weekly low of Rs.408.2/kg before closing at Rs.410.2/kg in the last trading session.


Outlook

We expect LME Copper prices to trade on a mixed note today on the back of mixed global market sentiments will exert downside pressure on prices.

While on the other hand, strong machinery orders data from Japan coupled with weakness in the DX will cushion sharp downside or even reversal in prices.

In the Indian markets, Rupee appreciation will keep a check on gains in prices.