Commodities

Industrial metals (copper, aluminium, nickel, etc.) daily review (October 10, 2012)

Contributed by Angel Broking

The base met als pack traded on a negative note in the yesterday's trade on the back of rise in risk aversion in the global markets which added downsi de pressure on the base metal prices.

Additionally, strength in the DX also acted as a negative factor for the prices. However, mixed sentiments in LME inventories cushioned sharp fall in the prices.

In the Indian markets, depreciation in the Rupee prevented further fall in the prices.

Copper

Copper, the leader of the base metals complex declined 0.2 percent due to bearish global market sentiments as International Monetary Fund cuts the global growth forecast to 3.3 percent in 2012, the slowest pace since the 2009 recession. Strength in the DX also acted as a bearish factor for the copper prices.

However, decline in LME Copper inventories by 0.7 percent cushioned sharp fall in the copper prices which stood at 221,050 tonnes. The red metal touched an intra-day low $8,138/tonne and clos ed at $8,162/tonne in yesterday's session.

On the domestic front, prices gained 0.3 percent and closed at Rs.434.8/kg after touching a high of Rs.436.20/kg on Tuesday.

Outlook

In today's session, we expect base metals to trade on a bearish note on the back of negative global market sentiments. Additionally strength in the DX will also exert downside pressure on the base metals. Depreciation in the Indian rupee will however cushion sharp fall in the prices of base metals on MCX.