• Industrial metals (copper, aluminium, nickel, etc.) daily review (September 21, 2015)

    Base Metals

    Base metals on the LME traded lower last week yesterday as investors remained cautious ahead of US rate hike decision.

    However, weakness in the DX restricted sharp downside.

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


    LME Copper prices plunged by 2.2 percent as uncertainty ahead of the FOMC statement gave jitters to markets across the globe and hurt risk appetite. Also, weaker-than-expected economic data out of China fuelled fears about slowing growth in the world's second biggest economy.

    However, supply disruption concerns after Chile, the world’s biggest producer, was hit by a large earthquake that temporarily stopped some mines from operating and triggered tsunamis that damaged a small port. Also, weakness in the DX ahead of the FOMC statement supported gains. Further, decline in LME stocks acted as a positive factor.

    Further losses were cushioned as State-owned Assets Supervision and Administration Commission stated it will make more effort in reforming `zombie enterprises,' long-time loss-making enterprises, and in disposing of those low- efficient and non-performing assets.

    MCX copper prices traded lower by 3.7 percent and closed at Rs.350.6/kg in line with international trends.


    We expect Copper prices to trade lower today owing to concerns over the health of the global economy after the U.S. Federal Reserve last week delayed an interest rate rise. Further, tsunami that hit the Chilean port of Coquimbo after Wednesday's earthquake did not damage the copper concentrate in JX Nippon Mining & Metals' Caserones warehouse despite minor flooding.

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

    Contributed by Angel Broking
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