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Commodities Industrial Metals

Industrial metals (copper, aluminium, nickel, etc.) daily review (May 29, 2014)

May 29, 2014, Thursday, 04:43 GMT | 23:43 EST | 08:13 IST | 10:43 SGT
Contributed by Angel Broking


Base Metals

Base metals on the LME traded on a mixed note taking cues from mixed economic data from Euro Zone that exerted downside pressure on prices. Also, strength in the DX along with mixed global market sentiments acted as negative factors.

While on the other hand, declining trend in LME inventories capped sharp gains.

In the Indian markets, base metals traded on a mixed note but Rupee appreciation restricted sharp gains in prices.


Copper

LME Copper prices traded on a flat note yesterday owing to speculation that positive global equity markets will spur demand for the red metal. Further, plunge of 3.8 percent in inventories to 169,825 tonnes acted as a positive factor.

While on the other hand, mixed global market sentiments coupled with strength in the DX wiped off gains in prices. The red metal touched an intra-day high of $6970/tonne and closed at $6940/tonne on Wednesday.

MCX Copper traded on a flat note and touched an intra-day low of Rs.414.5/kg before closing at Rs.414.95/kg in the last trading session.


Outlook

We expect LME Copper prices to trade sideways today on the back of estimates of unfavorable economic data from the US in the evening session that will exert downside pressure. Also, strength in the DX coupled with weak market sentiments will act as a negative factor.

While on the other hand, optimism regarding improving economic scenario in the US and China will support gains or even reversal in prices.

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