Commodities

Industrial metals (copper, aluminium, nickel, etc.) daily review (October 25, 2012)

Contributed by Angel Broking

The base metals pack traded on a mixed note in the yesterday's trade on the back of mixed global market sentiments along with unfavourable economic data from the Euro Zone

However, decline in LME inventories supported an upside in the base metal pr i ces coupled with weakness in the DX.

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 manufacturing data from the Chinese economy along with weakness in the DX. However, sharp rise in the prices were capped on the back of series of unfavourable data from the Euro zone area showing slowdown of t he economy.

Decline in LME Copper inventories by 0.1 percent also acted as a supportive factor for the copper prices. LME Copper stocks stood at 2,22,350 ton nes. The red metal touched an intra-day high $7,918/tonne and closed at $7,860/tonne in yesterday's session. On the domestic front, prices gained 0.2 percent and closed at Rs.427.4/kg after touching a high of Rs.428.6/kg on Wednesday.

Outlook

From the intraday perspective base metal prices are expected to trade on a positive note due to upbeat global market sentiments along with weakness in the DX. Positive data from the Chinese and US economy may increase the demand for the red metal. Appreciation in the Rupee will however, cap sharp gains in the base metal prices in the Indian markets.