Commodities

Industrial metals (copper, aluminium, nickel, etc.) daily review (September 14, 2012)

Contributed by Angel Broking

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

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

Copper

Copper, the leader of the base metals complex increased by 1.3 percent on the back of upbeat global market sentiments along with weakness in the DX.

However, sharp upside in the copper prices was restricted on account of rise in LME Copper inventories by 0.3 percent which stood at 216,325 tonnes. The red metal touched a high of $8,200/tonne and closed at $8,184.0/tonne in yesterday's session.

On the domestic front, prices gained 0.7 percent and closed at Rs.455.40/kg after touching a high of Rs.456.4/kg on Thursday.

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, statement from US Federal Reserve Chairman Ben Bernanke of buying $40 billion long term Mortgage Backed Securities (MBS) every month will 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.