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Commodities Industrial Metals

Industrial metals (copper, aluminium, nickel, etc.) daily review (May 21, 2014)

May 21, 2014, Wednesday, 06:19 GMT | 01:19 EST | 09:49 IST | 12:19 SGT
Contributed by Angel Broking


Base Metals

Base metals on the LME traded on a negative note yesterday taking cues from weak inflation data from the Euro Zone and UK. Also, rise in risk aversion in the market sentiments along with strength in the DX exerted downside pressure on prices.

However, decline in LME inventories cushioned sharp fall in prices.

MCX base metals traded lower yesterday in line with international markets but Rupee depreciation prevented sharp fall in prices.


Copper

LME Copper prices declined by 0.7 percent yesterday owing to declining inflation numbers from the Euro Zone and UK. Also, strength in the DX coupled with mixed global market sentiments acted as negative factors.

However, decline in LME inventories by 1.2 percent to 180825 tonnes prevented further fall. The red metal touched an intra-day low of $6831/tonne and closed at $6870/tonne on Tuesday.

MCX Copper prices declined by 0.5 percent and touched an intra-day low of Rs.407.65/kg before closing at Rs.410.1/kg in the last trading session. Rupee depreciation restricted sharp fall in prices.


Outlook

We expect LME Copper prices to trade on a mixed note today on the back of weak global market sentiments coupled with strength in the DX which will exert downside pressure on prices.

While on the other hand, estimates of positive economic data from the Euro Zone and UK will support gains.

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

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