• Industrial metals (copper, aluminium, nickel, etc.) daily review (September 23, 2015)

    Base Metals

    Base metals on the LME traded lower yesterday as Asian Development Bank cut its growth forecasts for China, and said ebbing consumption of raw materials in the nation would hurt commodity-focused exporters like Mongolia and Indonesia.

    Also, strength in the DX along with negative market sentiments acted as negative factors.

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


    LME Copper prices plunged by 3.6 percent to three-week low levels in the market's biggest single-day loss in more than two months as worse-than-expected economic growth in the first half for most Asian economies and a delayed global recovery have led the Asian Development Bank to cut its regional forecasts for this year and next. The region’s economy will grow 5.8% in 2015 and 6.0% in 2016—down in both cases from 6.3% previously forecast.

    Further, the International Copper Study Group said the global refined-copper market showed a surplus of around 20,000 tons in the first half of 2015, compared with a deficit of 576,000 tons in the same period last year. Besides, Chinese bondholders facing the prospect of a debt default by a state-owned enterprise will receive a bailout, signaling that Beijing remains unwilling to impose market discipline on loss making state groups.

    MCX copper prices traded lower by 3.3 percent and closed at Rs.339.6/kg in line with international trends.


    We expect Copper prices to trade lower today as Caixin China manufacturing purchasing managers' index (PMI) fell to a six-and-a-half-year low of 47.0 in September mainly led by the new orders and new export orders sub-indexes, suggesting weak domestic and external demand. Further, sense of caution in the global markets will keep investors at bay.

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

    Contributed by Angel Broking
About us
StockMarketsReview.com provides news coverage, analysis and researches for world stock markets, commodities and currencies. We publish articles provided by experts of leading brokerage and investment companies. At our website investors can find daily, weekly and monthly reports, news, recommendations on the IPOs and fundamental analysis for stocks which are currently traded at the stock exchange.