• Industrial metals (copper, aluminium, nickel, etc.) daily review (September 10, 2015)

    Base Metals

    Base metals on the LME traded on a mixed note yesterday as mixed employment reports from the US have raised uncertainty regarding decision of the Federal Reserve regarding rate hike. However, assurance by the China’s Ministry of Finance restricted sharp fall.

    On the MCX, all the base metal prices traded mixed in line with international trends.


    LME Copper prices jumped to a seven week high on Wednesday in response to Glencore PLC’s announcement it would suspend two of its large copper mines in Africa. Also, the metal gained support from China’s Ministry of Finance statement it would roll out a “more forceful” fiscal policy to stimulate economic growth, such as allocating more funds for infrastructure projects and tax cuts for small businesses.

    Further, Freeport McMoRan will chop around 68,000 per tonnes both next year and in 2017 by suspending its Miami mine in Arizona and reducing output at both its Tyrone mine in New Mexico and its majority-owned El Abra mine in Chile.

    MCX copper prices rose by 0.2 percent and closed at Rs.363.3/kg in line with international trends.


    We expect Copper prices to trade lower today as Chinese producer prices slipped deeper into deflation marking the 42nd consecutive month of declines. Also, investors will be cautious ahead of US inflation data due tomorrow. However, major supply cuts will cushion sharp downside.

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

    Contributed by Angel Broking
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