Commodities

Industrial metals (copper, aluminium, nickel, etc.) daily review (September 25, 2012)

Contributed by Angel Broking

The base metals pack traded lower in yesterday's trading session on the back of r ise in risk aversion in the global markets along with strength in the DX.

Additionally, mixed LME inventories also added downside pressure on the prices.

In the Indian markets, depreciation in the Rupee cushioned sharp fall in the prices on the MCX.

Copper

Copper, the leader of the base metals pack declined by 1.4 percent yesterday on the back of weak global market sentiments along with strength in the DX.

Additionally, rise in LME Copper inventories by 0.2 percent which stood at 219,950 tonnes also exerted downside pressure on the prices.

The red metal touched an intra-day low of $8,150/tonne and closed at $8,178.30/t onne in yesterday's trading session.

On the domestic front, prices declined by 0.9 percent and closed at Rs.442.5/kg after touching an intra-day low of Rs.440.8/kg on Monday.

Outlook

In today's session, we expect base metals to trade on a bearish note on the back of mixed global market sentiments along with strength in the DX. European leader's disagreement over the banking union and talks amongst them coming to a deadlock and Greece struggling to meet the bailout commitments is creating bearish global market sentiments causing risk aversion amongst market participants. 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.