Commodities

Industrial metals (copper, aluminium, nickel, etc.) daily review (September 20, 2012)

Contributed by Angel Broking

Base metal prices traded on a firm note on the back of expectation that stimulus measures by the central bankers might improve the demand for the base metals. Further decline in the LME inventories in yesterday's session also supported an upside in the base metals.

Copper

Copper, the leader of the base metals complex increased 0.6 percent on the back of upbeat global market sentiments along with weakness in the DX also added to gains of the copper prices. Additionally, fall in the LME stocks of copper by 1.2 percent which stood at 217,175 tonnes also acted as a supportive factor for the copper prices.

The red metal touched a intra-day high of $8,422/tonne and closed at $8,350/tonne on Wednesday

Outlook

In today's session, we expect base metals to trade on a bearish note on the back of weak global market sentiments along with strength in the DX. Weak data from the Japan and stabilising manufacturing data from the Chinese economy might act as a bearish factor for the base metals today. However, sharp down side in the prices are expected to be cushioned as Chinese government has approved infrastructure plans which might revive demand for the base metals. In the domestic markets however, depreciation in the Indian rupee is expected to cushion sharp fall in the prices.