Commodities

Industrial metals (copper, aluminium, nickel, etc.) daily review (October 16, 2012)

Contributed by Angel Broking

The base metals pack traded on a mixed note in the yesterday's trading sessio n on the back of mixed LME inventories along with strength in the DX.

However, sharp downside in the prices was cushioned as a result of rise in risk ave rsion in the global market sentiments.

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

Copper

Copper, the le ader of the base metals complex swung between gains and losses and finally ended 0.1 percent higher due to positive US retail sales da ta. However, sharp rise in e prices were capped on the back of strength in the DX. Worries of substantial demand from the major consum ing nation China also capped sharp gains.

However, decline in LME Copper inventories by 1.7 percent cushioned sharp fall in the copper prices. LME Copper stocks stood at 212,275 tonnes. The red metal touched an intra-day low $8,050/tonne and closed at $8,126.25/tonne in yesterday's session.

On the domestic front, prices ended on a flat note and closed at Rs.434.6/kg after touching a high of Rs.435.7/kg on Monday. Depreciation in the Indian rupee also supported an upside in the copper prices on MCX.

Outlook

Base metal prices in today's session are expected to trade on a firm note on the back of upbeat global market sentiments along with weakness in the DX. Positive economic data from the Chinese and US might increase demand for the base metals thereby supporting an upside in the prices. However, in the domestic markets appreciation in the Indian rupee will cap sharp gains in the prices of base metals on MCX.