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Commodities Industrial Metals

Industrial metals (copper, aluminium, nickel, etc.) daily review (September 03, 2014)

September 3, 2014, Wednesday, 06:02 GMT | 01:02 EST | 09:32 IST | 12:02 SGT
Contributed by Angel Broking


Base Metals

Base metals on the LME apart from Nickel traded on a positive note yesterday as U.S. manufacturing expanded at the fastest rate in three years and co nstruction spending rebounded, signaling increased demand from the second biggest consumer. Also, favorable economic data from the Euro Zone and UK supported gains.

However, strength in the DX along with mixed trend in LME inventories restricted sharp upside in prices.

MCX base metals traded higher on Tuesday in line with strength in international markets.


Copper

LME Copper prices gained 0.1 percent yesterday as U.S. manufacturing activity hit a nearly 3-1/2-year high in August and construction spending rebounded strongly in July, signs the economy continues its strong momentum in the third quarter.

However, sharp gains were capped by concerns of excess supply after Newmont resumes concentrate exports this week. The red metal touched an intra-day high of $6988/tonne in the last trading session.

On the MCX, red metal prices rose 0.3 percent and touched an intraday high of Rs.431.65/kg before closing at Rs.428.7/kg on Tuesday.


Outlook

From the intra-day perspective, we expect copper prices to trade sideways today as expectations of fresh supply will be weighing on prices and dampening investor interest. Also, estimates of negative retail sales data from Euro Zone will act as a negative factor.

While on the other hand, expectations of Factory Orders data from the US in the evening session will support gains. In addition, predictions of fresh monetary support from the European Central Bank will push prices to the upside.

In the Indian markets, Copper prices will trade sideways in line with trend in the international markets.