• Industrial metals (copper, aluminium, nickel, etc.) daily review (September 02, 2015)

    Base Metals

    Base metals on the LME traded lower yesterday as activity in China’s manufacturing sector contracted at its fastest pace in three years, instigating fears about a China slowdown that have roiled global markets.

    However, weakness in the DX restricted sharp fall in prices.

    On the MCX, all the base metal prices traded mixed on Tuesday.


    LME Copper prices plunged by 1.3 percent yesterday as manufacturing activity in the U.S. expanded at the slowest rate in more than two years in August following Chinese manufacturing numbers which fell to three year low, there raising concerns over demand for the red metal. Also, Christine Lagarde, the head of the International Monetary Fund, expressed significant concern with the steep transition the Chinese economy faces in the coming months in her first public comments since the People's Bank of China rattled global equity markets last week.

    However, string of weak economic data from the US fanned expectations of delay in interest rate hike by the Federal Reserve. Besides, decline of 1 percent in LME stocks provided some support.

    MCX copper prices rose by 0.4 percent and closed at Rs.343.3/kg.


    We expect LME Copper prices to trade lower as markets ignored fresh stimulus measures by China that included a further relaxation in property investment rules, as well as policies to support mergers, acquisitions and share buybacks by listed companies. Also, investors will be cautious ahead of crucial ADP Non-Farm Employment Change data for cues on the US economy.

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

    Contributed by Angel Broking
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