Commodities

Industrial metals (copper, aluminium, nickel, etc.) daily review (September 11, 2012)

Contributed by Angel Broking

The base metals pack traded on a positive note in the yesterday's trading session on the back of decline in LME inventories However; sharp upside in the prices was restricted on account of rise in risk aversion in the global markets along with strength in the DX.

In the Indian markets depreciation in the Rupee supported upside in the prices.

Copper

Copper, the leader of the base metals complex gained by 1.1 percent in the yesterday's trading session on the back of decline in LME copper inventories by 0.6 percent which stood at 214,650 tonnes.

However, weak global market sentiments along with strength in the DX capped sharp upside in the prices. The red metal touched a high of $8,054/tonne in yesterday's trade and closed at $8,069.30/tonne on Monday.

On the domestic front, prices gained by 1.4 percent as a result of depreciation in the Indian Rupee and closed at Rs.453.0/kg on after touching a high Rs454.90/kg in the yesterday's trading session.

Outlook

From the intra-day perspective, we expect base metal prices to trade on a bearish note on the back of weak global market sentiments coupled with strength in the DX. Additionally, expectations that Euro Zone policymakers will not be able to solve Euro region debt crisis will add downside pressure on the prices. Depreciation in the Rupee will support upside in the prices in the Indian markets.