Commodities

Industrial metals (copper, aluminium, nickel, etc.) daily review (September 18, 2012)

Contributed by Angel Broking

The base metals pack traded on a negative note yesterday on the back of rise in risk aversion in the global markets coupled with strength in the DX. However, sharp downside in the prices was cushioned on account of decline in LME inventories.

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

Copper

Copper, the leader of the base metals complex declined by 1.2 percent on the back of weak global market sentiments along with strength in the DX.

However, sharp downside in the prices was restricted on account of decline in LME Copper inventories by 0.2 percent which stood at 216,700 tonnes. The red metal touched an intra-day low of $8,290/tonne and closed at $8,290/tonne in yesterday's trading session.

On the domestic front, prices declined by 1 percent and closed at Rs.453.20/kg after touching an intra-day low of Rs.451.9/kg on Monday.

Outlook

In today's session, we expect base metal prices to trade on a bearish note on the back of strength in the DX along with worries that stimulus measures by the global central bankers might not be enough to revive the economies. However, approval of new infrastructure projects in China is likely to cushion sharp fall in the prices. In the domestic markets however, appreciation in the Rupee will exert downside pressure on the base metal prices.