MCX Base Metals Views
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LME base metals traded mixed yesterday as Iran and Saudi Arabia did not seem to come on a consensus to ease global glut at the informal OPEC meeting.MCX base metals traded mixed in line with international trends.
Nickel
Nickel surged 2.2 percent yesterday, to seven week high levels as the Philippines government on Tuesday recommended 20 more mines be suspended until operators address lapses. The government has given them seven days to explain any violations of mining and environmental laws.
Copper
LME Copper prices fell by 1.1 percent yesterday to $4787/tonne as risk appetite was hurt after Iran rejected an offer from Saudi Arabia on Tuesday to limit its oil output in exchange for Riyadh cutting supply, thereby failing all hopes of a possible consensus between the two.Further stock additions at LME’s South East Asian warehouses of Gwangyang, Klang and Busan is acting as negative factor.
However, sharp downside was restricted as Industrial profit growth in China surged 19.5 percent to 534.8 billion Yuan in August to the highest level since 2013 helped by rising sales, higher prices and lower costs, shown recent signs of stabilization.MCX copper prices traded lower by 1.3 percent to close at Rs.322.5 per kg on Tuesday.
Outlook
LME Copper is currently trading higher by 0.3 percent at $4800/tonne. Prices will likely turn lower during the day as investors will remain cautious ahead of Janet Yellen’s testimony and ECB President’s speech due tonight. Also, estimates of weak durable goods orders data from the US will exert pressure.
