• Industrial metals (copper, aluminium, nickel, etc.) daily review (September 29, 2015)

    Base Metals

    Base metals on the LME apart from Zinc traded lower yesterday as rising costs and falling product prices pushed profits earned by Chinese industrial companies lower to decline at the sharpest rate in four years in August.

    Also, investors were at bay ahead of Chinese national holiday and crucial data from the US and China.

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


    LME Copper prices plunged by 1.2 percent and dropped to 6-yaer low on Monday as data showed earnings by industrial companies in China, responsible for 45% of world copper consumption, tumbled by $24.6 billion or nearly 9% from a year earlier, with the largest drops in producers of coal, oil and metals. It was the biggest decline since 2011 when the Chinese National Bureau of Statistics first started to gather the data.

    Also, share prices of world’s largest copper mining companies plunged sharply yesterday owing to concerns that slump in the copper price could last years due to the slowdown in China. Further, US pending home sales fell 1.4 percent in August compared to July as rising home prices and a tight supply of homes for sale kept buyers at bay.

    MCX copper prices traded lower by 1.1 percent and closed at Rs.334/kg in line with international trends.


    We expect Copper prices to trade lower today as sentiments regarding the red metal are very bearish and is likely to keep investors away. Also, investors will remain at bay ahead of Chinese weeklong National holiday starting October 1. Further, estimates of weak CB Consumer Confidence data will act 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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