Commodities

Industrial metals (copper, aluminium, nickel, etc.) daily review (September 13, 2012)

Contributed by Angel Broking

The base metals pack traded on a mixed note in the yesterday's trading session on the back of mixed LME inventories. However, sharp downside was cushioned on account of rise in risk appetite in the global markets along with weakness in the DX.

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

Copper

Copper, the leader of the base metals complex declined 0.1 percent on the back of rise in the LME copper inventories by 0.5 percent which stood at 215,775 tonnes.

However sharp fall in the copper prices were cushioned due to upbeat global market sentiments and weakness in the DX. The red metal touched a low of $8,027/tonne and closed at $8,076.50/tonne in yesterday's session.

On the domestic front, prices declined 0.1 percent taking cues from LME and closed at Rs.452.3/kg on Wednesday after touching a low of Rs.448.8/kg in the last week.

Outlook

In today's session, we expect base metal prices to trade on bullish note on the back of upbeat global market sentiments coupled with weakness in the DX. Additionally expectation of stimulus measures from the US Federal Reserve to support an upside in the base metals pack. Appreciation in the Rupee will cap sharp gains in the base metal prices in the Indian markets.