Base metals prices witnessing range bound movement following mixed movements on US dollar, while today China National Bureau of Statistics reported economic growth in China, the largest metals user, was 9.6 percent in the third quarter, the smallest gain in a year. Further, surprise rate hike is also dampening prices. LME Copper traded below $7300 level, while lead and zinc prices yesterday showed some improvement.
China's GDP grew 9.6 percent in the third quarter from the same period last year. The growth rate slowed down from 11.9 percent in the first quarter and the 10.3 percent in the second quarter. In Jan-Sep period, the GDP grew by 10.6 percent. Consumer prices rose 3.6 percent, matching the median forecast of economists surveyed by Bloomberg.
Industrial production remained robust but compared to quarter on quarter basis the production showed declines. Industrial production of China grew by 13.5 percent in third quarter. In Second quarter the production was up by 15.9 percent.
Today, still somewhat selling pressure may continue in base metals; however some lower level buying opportunity may exists at lower levels. MCX Copper has strong support at 367; nickel has support near 1030, while zinc and lead have support at 104 level.
Trend: Sideways
LME Copper: Resistance at $8400, Support at $8000.
