• Industrial metals (copper, aluminium, nickel, etc.) daily review (September 03, 2015)

    Base Metals

    Base metals on the LME apart from Lead traded higher yesterday as Chinese markets recovered and US markets rebounded thereby raising the risk appetite.

    However, strength in the DX restricted sharp gains in prices.

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


    LME Copper prices jumped by 1 percent yesterday as short sellers covered their positions ahead of a national holiday in China on Thursday. Also, new orders for U.S. factory goods rose for a second straight month in July on strong demand for automobiles, which could help to keep manufacturing supported as it deals with the buoyant dollar and softening global demand. Also, decline of 1.4 percent in LME stocks acted as a positive factor.

    However, strength in the DX along with concerns about growth in the world's biggest consumer of metals China restricted sharp gains.

    MCX copper prices rose by 0.8 percent and closed at Rs.346/kg.


    We expect LME Copper prices to trade lower as markets will keep an eye on the European Central Bank press conference for cues if they might extend its 1.1 trillion-euro ($1.2 trillion) stimulus program. Also, volatility will be low as Chinese markets remain closed today. Further, investors will be cautious ahead of NFP data from the US due tomorrow.

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

    Contributed by Angel Broking
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