• Industrial metals (copper, aluminium, nickel, etc.) daily review (August 27, 2015)

    Base Metals

    Base metals on the LME traded lower yesterday as global investors still remain cautious about the prospects for China despite Tuesday’s attempt by the country’s central bank to stimulate the economy of the world’s biggest buyer of metals. Also, strength in the DX acted as a negative factor.

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


    LME Copper prices plunged by 2.6 percent on Wednesday as Chinese equities continued to struggle on Wednesday and ended 1.3 percent lower despite rate cut decision by the PBoC, as worries whether efforts by Beijing sufficed to spur its slowing economy bothered investors. In addition, LME Copper stocks jumped by 3.8 percent on Tuesday indicating weak demand.

    However, sharp losses were restricted as Federal Reserve Bank of New York President William Dudley said the case for raising US interest rates in September is less compelling amid recent market turmoil. Also, orders for capital goods increased in July by the most in more than a year.

    MCX copper prices traded lower by 2.3 percent and closed at Rs.329.1/kg in line with international trends.


    We expect LME Copper prices to trade lower as investors will be cautious ahead of US Prelim GDP data due to be released tonight. Also, weakness in the Shanghai markets despite intervention by PBoC signals extreme distress in China’s economy. However, expectations of favorable Pending Home Sales 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
About us
StockMarketsReview.com provides news coverage, analysis and researches for world stock markets, commodities and currencies. We publish articles provided by experts of leading brokerage and investment companies. At our website investors can find daily, weekly and monthly reports, news, recommendations on the IPOs and fundamental analysis for stocks which are currently traded at the stock exchange.