Base metals pack traded higher on the LME in the last week, mainly taking cues from weakness in the US dollar coupled with positive sentiments in the global equity markets. In addition to this, favorable employment data from the US also helped base metal prices rise in the international markets last week. Lead was the top performer in the last week, as the metal gained around 3.4 percent on the LME and almost 3 percent on the MCX. Factors that influenced prices include - sharp fall in LME inventories, a weaker dollar, favorable economic data from the US and positive sentiments in the global equity markets. Lead inventories declined 1 percent in the last week to 291,500 tonnes on Friday. Copper prices gained more than 0.5 percent on the LME in the last week, mainly of the back of upbeat employment data from the US. Prices hit a high of $9999/tonne last week and closed at $9845/tonne on Friday. However, on the MCX, the red metal prices came under pressure on account of appreciation in the Indian Rupee. MCX Copper April contract declined around 0.2 percent and touched a low of RS445.50/kg in the last week. Outlook We expect base metals prices to trade lower today, mainly taking cues from ongoing worries in Libya. Additionally, strength in the US dollar coupled with negative sentiments in the global equity markets will also exert pressure on the metal prices today.

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