Commodities

Industrial metals (copper, aluminium, nickel, etc.) daily review (October 23, 2012)

Contributed by Angel Broking

The base metals pack traded on a negative note in the yesterday's trade on the back of mixed global market sentiments, strength in the DX along with mixed scenario in the LME inventories.

Additionally, slowdown in the Chinese economy and decline in Japan's exports also added downside pressure on the prices.

In the Indian markets, appreciation in the Rupee added further downside pressure in the prices on the MCX.

Copper

Copper, the leader of the base metals complex fell by 0.6 percent yesterday on the back of mixed global market sentiments, strength in the DX along with rise in LME Copper inventories by 0.7 percent which stood a t 222,425 tonnes.

Also, slowdown in the Chinese economy coupled with fall in Japan's exports exerted downside pressure on the prices. The red metal touched an intra-day low of $7,930/tonne and closed at $7,944.0/tonne in yesterday's trading session.

On the domestic front, prices declined by 1.5 percent as a result of appreciation in the Indian Rupee and closed at Rs.429.0/kg after touching an intra-day low of Rs.428.50 /kg on Monday.

Outlook

From the intraday perspective base metal prices are expected to trade on a bearish note owing to expectation of weak demand from key consuming nation, China and debt worries of Euro zone. However, weakness in the DX along with mixed global market sentiments is expected to cushion sharp fall in the intra-day. In the domestic markets appreciation in the Indian rupee is expected to keep the MCX base metal prices bearish in today's session.