• Industrial metals (copper, aluminium, nickel, etc.) daily review (August 28, 2015)

    Base Metals

    Base metals on the LME traded higher yesterday as renewed optimism for the demand outlook after US economic growth last quarter exceeded all forecasts pushed prices to their biggest rally in more than two years. Also, sharp rebound in Shanghai and Shenzhen equity markets by 5.3 and 5.9 percent respectively snapped a five-day losing streak.

    Further, strength in the DX could not restrict sharp gains in prices.

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


    LME Copper prices surged by 4.2 percent on Thursday as a rally in the Chinese stock market eased market fears about the state of the country’s economy. Also, red metal drew support from Federal Reserve Bank of New York President William Dudley statement that the case for raising US interest rates in September is less compelling amid recent market turmoil.

    Further, sharp recovery in the US GDP in the second quarter following the weather-induced sluggish performance in first quarter, indicates the economy gained momentum.

    MCX copper prices jumped by 3.3 percent and closed at Rs.339.9/kg in line with international trends.


    We expect LME Copper prices to trade higher as a broad recovery in global markets will support the risk appetite. Also, sharp rebound in the US economy as indicated by second quarter GDP figures along with expectations of favorable US Consumer Sentiment data will act as positive factors.

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

    Contributed by Angel Broking
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