Commodities

Industrial metals (copper, aluminium, nickel, etc.) daily review (September 28, 2012)

Contributed by Angel Broking

The base metals pack traded higher in yesterday's trading session on account of rise in risk appetite in the global markets along with weakness in the DX.

Additionally, decline in LME inventories apart from Zinc also supported an upside in the prices. However, weak economic data from US capped sharp gains in the prices.

In the Indian markets, appreciation in the Rupee prevented sharp upside in the prices on the MCX.

Copper

Copper, the leader of the base metals complex increased by 0.8 percent yesterday on the back of upbeat global market sentiments along with weakness in the DX.

Additionally, decline in the LME Copper inventories by 0.2 percent which stood at 220,075 tonnes also acted as a positive factor for the prices. The red metal touched an intra-day high of $8213.50/tonne and closed at $8,210.0/tonne in yesterday's trading session.

On the domestic front, prices fell by 0.4 percent as a result of appreciation in the Indian Rupee and closed at Rs.440.10/kg after touching an intra-day low of Rs.436.80/kg on Thursday.

Outlook

In the intra-day, we expect base metals to trade on a firm note on the back of positive global market sentiments coupled with weakness in the DX. Additionally, anticipating further stimulus measures from the Chinese government might support an upside in the base metals pack. In the Indian markets appreciation in the Rupee will however, cap sharp gains in the base metal prices on MCX.