Commodities

Industrial metals (copper, aluminium, nickel, etc.) daily review (September 24, 2012)

Contributed by Angel Broking

The base metals pack traded on a mixed note week on week on the back of expectation that approval by the Chinese government to the infrastructure spending might drive the demand for the base metals. However, strength in the DX along with weak economic data from the major eco nomies capped sharp gains in the base metals pack.

Copper

Copper, the leader of the base metals pack declined by 1.2 percent and closed at $8,292.75/tonne in last trading session of the week.

The red metal's inventories on the LME warehouses rose around 1.3 percent to 2 19475 tonnes on 21st September 2012 from the previous level of 216700 tonnes on 14th September 2012.

On the domestic front, prices declined 2.4 percent and closed at Rs.446.5/kg after touching a weekly low of Rs.446.10/kg in yesterday's session.

Weekly Copper Inventories

The red metal's inventories on the LME warehouses increased around 1.06 percent to 219,475 tonnes on 21st September 2012 from the previous level of 217,175 tonnes on 14th September 2012.

Weekly copper inventories at warehouses monitored by the Shanghai Futures Exchange increased by 6.7 percent to 166,829 tonnes last week.

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. Further, weak economic data from the economies along with stalemate conditions amongst European leaders over the banking union and concerns of Greece struggling to meet the commitments is creating bearish market sentiments. This would pressurise prices on the downside. In the domestic markets however, depreciation in the Indian rupee is expected to cushion sharp downside in the base metals.