Base Metals
Base metals on the LME traded higher yesterday as Chinese shares gained nearly 3 per cent on Tuesday thereby propping up the risk appetite in the global markets.
Also, weakness in the DX along with favorable Chinese imports data supported gains in the pack.
On the MCX, all the base metal prices traded higher in line with international trends.
Copper
LME Copper prices jumped by 3.8 percent to a four week high on Tuesday boosted by expectations of decline in supply surplus after commodity trader and miner Glencore said it would shut two large copper mines in Africa that account for 1% to 2% of world-wide copper output.
Also, trade data released Tuesday showed China imported 350,000 metric tons of copper in August, up 4% from the year-ago period. Further, decline of 1.7 percent in LME stocks acted as a positive factor.
MCX copper prices jumped by 3.2 percent and closed at Rs.362.6/kg in line with international trends.
Outlook
We expect Copper prices to trade higher today as Glencore’s supply cut is likely to substantially reduce the 545,000-metric-ton surplus, thereby buoying gains in the red metal. Also, recovery in the market sentiments will be supportive. However, investors will be cautious ahead of Chinese inflation data due tomorrow.
On the MCX, copper prices are expected to trade higher today in line with international trends.
Contributed by Angel Broking