Commodities

Industrial metals (copper, aluminium, nickel, etc.) daily review (October 31, 2012)

Contributed by Angel Broking

The base m etals pack traded on a positive note in yesterday's trading session on the back of rise in risk appetite in the global markets coupled with weakness in the DX.

However, mixed LME inventories scenario capped sharp upside movement in the prices.

In the Indian markets, appreciation in the Rupee prevented sharp upside in the prices.

Copper

Copper, the leader of the base metals complex increased 0.1 percent due to improved buying at lower levels amidst weakness in the DX. However, sharp upside in the prices was capped as demand from the major consumer China remained sluggish.

Rise in LME Copper inventories by 0.03 percent also restricted sharp gains in the Copper prices on Tuesday. LME Copper stocks stood at 2,40,525 tonnes. The red metal touched an intra-day high of $7,778/tonne and closed at $7,735/tonne on Tuesday.

On the domestic front, prices increased by 0.1 percent and closed at Rs.421.2/kg after touching a high of Rs.423.5 /kg. Depreciation in the Indian rupee also supported an upside in the copper prices.

Outlook

From the intraday perspective, base metal prices are expected to trade on a positive note due to positive global market sentiments. Announcement of stimulus measures in Japan may boost the demand for the red metal. Additionally, weakness in the DX is expected to add to the gains in the base metals pack. Depreciation in the Rupee will act as a supportive factor for the base metal prices on MCX.