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Commodities Industrial Metals

Industrial metals (copper, aluminium, nickel, etc.) daily review (May 22, 2014)

May 22, 2014, Thursday, 07:30 GMT | 02:30 EST | 12:00 IST | 14:30 SGT
Contributed by Angel Broking


Base metals on the LME traded on a negative note yesterday taking cues from the current account data released from the Eurozone which showed a surplus of 18.8 billion versus 21.8 billion the previous month.

Also the consumer confidence number released yesterday showed that the optimism among the consumers with regards to the Eurozone economy as s whole is fading.

In addition strength in the DX also 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 0.5 percent yesterday owing to bad economic data from the Eurozone Also, strength in the DX coupled with mixed global market sentiments acted as negative factors.

However, decline in LME copper inventories by 1percent to 179100 tonnes prevented fall in prices. The red metal closed at $6839/ tonne on Wednesday.

MCX Copper prices declined by 065 percent taking cues from international markets before closing at Rs.407.8/kg in the last trading session. Rupee depreciation restricted sharp fall in prices.


Outlook

We expect LME Copper prices to trade on a lower note today on the weak data from the Euro-zone coupled with weak global market sentiments. Strength in the DX will exert downside pressure on prices.

Meanwhile, host of PMI data sets to be released from the Euro-zone will further decide trajectory of all the base metals pack in todays session

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

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