Commodities

Industrial metals (copper, aluminium, nickel, etc.) daily review (October 11, 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 coupled with expectations of slowdown in Chinese economic growth which added downside pressure on the base metal prices.

Additionally, mixed data of LME inventories also exerted pressure on the prices. However, weakness in the DX 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 traded on a flat note yesterday on the back of weak global market sentiments.

However, decline in LME Copper inventories by 0.7 percent which stood at 219,425 tonnes along with weakness in the DX cushioned sharp fall in the prices. The red metal touched an intra-day low $8,110.5/tonne and closed at $8,160/tonne in yesterday's session.

On the domestic front, prices gained by 0.7 percent as a result of depreciation in the Indian Rupee and closed at Rs.437.60/kg after touching a high of Rs. 437.9/kg on Wednesday.

Outlook

Base metal prices in today's session are expected to trade on a bearish note due to continuing Euro zone debt concerns and slow down in the global economy. Additionally strength in the DX will also exert downside pressure on the base metals. However, in the domestic markets depreciation in the Indian rupee will cushion sharp fall in the prices of base metals on MCX.