Commodities

Industrial metals (copper, aluminium, nickel, etc.) daily review (October 12, 2012)

Contributed by Angel Broking

The base metals pack traded on a mixed note in the yesterday's trade on the back of rise in risk appetite in the global markets which lead to upside on the base metal prices.

Additionally, weakness in the DX also supported an upside in the prices. However, mixed data of LME inventories exerted pressure on the prices.

In the Indian markets, appreciation in the Rupee prevented further gains in the prices.

Copper

Copper, the leader of the base metals complex gained 0.8 percent due to positive global market sentiments as US jobs data raised optimism amongst market participants and increased the risk appetite. This weakened dollar and supported an upside in the copper prices in yesterday's session.

However, marginal upside in LME Copper inventories by 0.1 percent capped further upside in the copper prices which stood at 219,550 tonnes. The red metal touched an intra-day high $8,283/tonne and closed at $8,2 22/tonne in yesterday's session.

On the domestic front, prices gained 0.1 percent and closed at Rs.437.90/kg after touching a high of Rs.439.90/kg on Thursday. However, appreciation in the Indian rupee capped sharp gains in the prices.

Outlook

Base metal prices in today's session are expected to trade firm due to positive global market sentiments and on China and Japan agreeing to hold talks over the territorial dispute is likely to resume trades. Thus, supporting an upside in base metals pack in today's session. Additionally, weakness in the DX will also exert downside pressure on the base metals. However, in the domestic markets appreciation in the Indian rupee will cap sharp rise in the prices of base metals on MCX.