• Industrial metals (copper, aluminium, nickel, etc.) daily review (August 25, 2015)

    Base Metals

    Base metals on the LME traded lower yesterday as the Shanghai Composite Index plunged more than 8 per cent, bringing its losses since a mid-June peak to about 37 per cent. This sparked a sell off rout in the global markets, sending the investors in to panic mode.

    Nickel was the biggest loser and slumped nearly 10 per cent to $US9215, its lowest since August 12 before ending 6.5 percent lower owing to expectations of weak demand from Chinese stainless steel mills and high inventories.

    On the MCX, all the base metal prices traded lower in line with trend in international markets.


    Last week, LME Copper prices plunged by 2.1 percent as decline in Shanghai Composite index despite steps from China on Sunday to allow pension funds to buy shares for the first time raised concerns of demand prospects from the world’s biggest consumer. Owing to this, global markets witnessed a selling rout, thereby hurting risk appetite of investors across the globe.

    However, weakness in the DX as prospect of US interest rates being raised next month is likely to have been delayed cushioned sharp losses.

    MCX copper prices traded lower by 1 percent and closed at Rs.334.5/kg in line with international trends.


    We expect LME Copper prices to trade lower as sharp volatility in the Shanghai markets has increased uncertainties over the health of China’s economy. However, expectations of favorable German Ifo Business Climate and US CB Consumer Confidence data will restrict sharp fall.

    On the MCX, copper prices are expected to trade lower today in line with international trends.

    Contributed by Angel Broking
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