Commodities

Industrial metals (copper, aluminium, nickel, etc.) daily review (September 17, 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. However, sharp upside in the prices was cushioned on account of rise in LME inventories.

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

Copper

Copper, the leader of the base metals complex increased 5.2 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 1.2 percent which stood at 217,175 tonnes. The red metal touched a weekly high of $8,411/tonne and closed at $8,393/tonne on Friday.

On the domestic front, prices gained 2.4 percent week on week and closed at Rs.457.7/kg after touching a high of Rs.463/kg on Friday.

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, last week 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.