Commodities

Industrial metals (copper, aluminium, nickel, etc.) daily review (September 10, 2012)

Contributed by Angel Broking

The base metals pack traded on a positive note in the last week on the back of r ise in risk appetite in the global markets along with weakness in the DX. Additionally, decline in LME inventories also supported upside in the prices.

In the Indian markets appreciation in the Rupee capped sharp upside in the prices.

Copper

Copper, the leader of the base metals complex gained by 5.1 percent in the last week on the back of upbeat global market sentiments coupled with weakness in the DX.

However, decline in LME inventories by 6.07 percent also supported upside in the copper prices. The red metal touched a high of $8,019/tonne during the week and closed at $7,982.0/tonne in the last trading session.

On the domestic front, prices gained by 5.3 percent and closed at Rs.446.80/kg on Friday after touching a high Rs./kg in the last week.

Outlook

From the intra-day perspective, we expect base metal prices to trade on a bullish note on the back of positive global market sentiments coupled with weakness in the DX. Additionally, increase in China;s CPI, Trade Balance and Retail Sales will also act as a positive factoir for the prices. Appreciation in the Rupee will cap sharp gains in the prices in the Indian markets.