• Industrial metals (copper, aluminium, nickel, etc.) daily review (September 04, 2015)

    Base Metals

    Base metals on the LME apart from Lead and Zinc traded higher yesterday as global markets rallied after statement by Mario Draghi that asset purchases “are intended to run until the end of September 2016, or beyond, if necessary,” indicated that the bank could extend its more than €1 trillion ($1.1 trillion) bond-purchase program beyond its targeted end date of September 2016. Also, short covering ahead of Chinese Victory day holiday supported gains.

    Nickel prices gained as Indonesia reinstated that it will keep its export ban on nickel ore, contrary to recent media reports suggesting the country may relax curbs to prop up its slowing economy.

    On the MCX, all the base metal prices except Lead and Zinc traded higher on Thursday.


    LME Copper prices jumped by 2.5 percent yesterday as a national holiday in China put a pause on negative news and sharp volatility following weakness in the world’s leading metals consumer. Also, European Central Bank President Mario Draghi sent a strong signal Thursday that the bank is prepared to expand its already massive bond-buying program, thereby buoying global markets.

    However, strength in the DX along with uncertainty over demand outlook restricted sharp gains.

    MCX copper prices rose by 1.9 percent and closed at Rs.352.6/kg.


    We expect LME Copper prices to trade sideways as investors will be cautious ahead of NFP data from the US due tonight. Also, volatility will be low as Chinese markets remain closed today. Further, signals from the European Central Bank press conference that it might extend its 1.1 trillion-euro ($1.2 trillion) stimulus program will be supportive.

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

    Contributed by Angel Broking
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