Base Metals
Base metals on the LME traded mixed yesterday following the return of China to the market after an extended holiday weekend. Also, volatility was low as US markets were closed for Labor Day.
On the MCX, all the base metal prices traded mixed in line with international trends.
Copper
LME Copper prices gained 0.5 percent on Monday after the London-listed commodities trading and mining giant Glencore said it would suspend operations at two copper mines in Zambia and the Democratic Republic of Congo, withdrawing about 400,000 tonnes out of the market.
Also, another giant Rio Tinto added that global copper markets could flip into a structural shortage within two to three years as demand from power stations makes it the first commodity to come out of a glut.
MCX copper prices jumped by 1.1 percent and closed at Rs.351.4/kg owing to Rupee depreciation.
Outlook
We expect Copper prices to trade lower today as decline in Chinese exports reflects tepid demand around the world outside the U.S. and sliding prices for inputs to China’s factories and their shipments abroad despite swelling of trade surplus to 368 billion Yuan. Also, strength in the DX acted as a negative factor.
On the MCX, copper prices are expected to trade lower today in line with international trends.
Contributed by Angel Broking
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