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Commodities Industrial Metals

Industrial metals (copper, aluminium, nickel, etc.) daily review (May 26, 2014)

May 26, 2014, Monday, 07:28 GMT | 02:28 EST | 10:58 IST | 13:28 SGT
Contributed by Angel Broking


Base Metals

Base metals on the LME traded on a positive note last week as manufacturing in the US and China gained momentum in May after showing decline in the past few months, thereby providing much needed relief to the pack. Also upbeat global market sentiments coupled with decline in LME inventories supported gains.

However, strength in the DX along with mixed economic data from the US and Euro Zone exerted downside pressure on prices.

MCX base metals traded on a positive note in the last week but Rupee appreciation prevented sharp gain in prices.


Copper

LME Copper prices gained by 0.6 percent last week on account of positive economic data from the US and China came. Also, rise in risk appetite in the market sentiments along with 0.85 percent decline in inventories to 175,850 tonnes acted as positive factors.

However, strength in the DX along with mixed economic data from Euro Zone and UK prevented capped sharp gains in prices. The red metal closed at $6913.5/ tonne on Friday.

MCX Copper prices gained by 0.3 percent last week taking cues from international markets and closed at Rs.410.9/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. Also, the Gfk German consumer climate data is expected to come on a flat note. Also, speech by the ECB president Draghi may provide clues about interest rates to the movement, thereby leading to movement in prices.

In the Indian markets, Rupee appreciation will cap sharp upside in prices.