Commodities

Industrial metals (copper, aluminium, nickel, etc.) daily review (October 15, 2012)

Contributed by Angel Broking

The base metals pack traded on a lower note in the last week on the back of rise i n risk aversion in the global markets which lead to downside pressure on the base metal prices.

Additionally, strength in the DX also added downside pressure in the prices. However, mixed data of LME inventories cushioned sharp fall in the prices.

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

Copper

Copper, the leader of the base metals complex declined 1.6 percent taking cues from reports of slowdown in the global economy amidst continued Euro zone debt worries. This along with strength in the dollar exerted downside pressure on the copper prices in yesterday's session.

However, sharp fall in the copper prices was cushioned on the back of decline in the LME Copper inventories by around 3 percent cushioned sharp fall in the copper prices which stood at 2,15,900 tonnes. The red metal touched weekly low of $8,105/tonne and clos ed at $8,118.3/tonne in the last week.

On the domestic front, prices gained 0.15 percent and closed at Rs.434.85/kg after touching a high of Rs.439.90/kg in the last week. Depreciation in the Indian rupee in the last week also acted as a supportive factor for the copper prices on MCX.

Outlook

Base metal prices in today's session are expected to trade on a negative note on the back of worries of global slowdown and no resolution of the Euro zone debt crisis. 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.