Commodities

Industrial metals (copper, aluminium, nickel, etc.) daily review (September 07, 2012)

Contributed by Angel Broking

The base metals pack traded on a mixed note in the yesterday's trading session. However, sharp downside in the prices was capped on the back of decline in the LME inventories coupled with weakness in the DX. Additionally, sharp downside in the prices was cushioned on account of upbeat global market sentiments.

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

Copper

Copper, the leader of the base metals complex declined by 0.3 percent in yesterday's trading session. However, sharp downside in the prices was cushioned on the back of upbeat global market sentiments along with weakness in the DX.

Additionally, decline in LME Copper inventories by 0.8 percent which stood at 213,225 tonnes also restricted sharp fall in the prices. The red metal touched an intra-day low of $7666/tonne and closed at $7,708.80/tonne in yesterday's trading session.

On the domestic front, prices declined by 0.9 percent on account of appreciation in the Indian Rupee and closed at Rs.433.50/kg after touching an intra-day low of Rs433.10./kg on Thursday.

Outlook

From the intra-day perspective, we expect base metal prices to trade on a bullish note on the back of positive outcome for the unlimited bond buying from the European Central Bank (ECB) policymakers. Additionally, upbeat global market sentiments along with weakness in the DX will also support upside in the prices. In the Indian markets, appreciation in the Rupee will cap sharp gains in the prices.