Base metals pack delivered a mixed performance on the LME on Tuesday with copper, lead and zinc trading in red while aluminium and nickel ended in the green. Metal prices came under pressure mainly on account of a stronger dollar coupled with choppy sentiments in the global financial markets. Depreciation in the Indian Rupee led to minimal losses on the domestic bourses.
Aluminium was the top gainer on the LME on Tuesday, as the metal rose almost 1 percent on the LME and around 1.4 percent on the MCX. Shut down of aluminum smelters in China supported the metal prices. Aluminium prices touched an intra-day high of $2803/tonne and closed at $2786.75/tonne. On the MCX, aluminium touched an intraday high of `124.20/kg and closed at `123.60/kg yesterday.
Copper declined 0.4 percent on the LME yesterday on concerns that continuous monetary policy tightening in China could impact economic growth in the worldﾒs largest metals consumer. The red metal prices touched an intra-day low of $9194/tonne and closed at $9342/tonne on Tuesday. Rupee depreciation led MCX copper May contract to gain almost 1.5 percent yesterday.
Outlook
We expect base metals to come under pressure today mainly on the back of concerns with regard to Chinaﾒs expected steps to increase interest rates. The dollar is expected to strengthen further and this too will add downside pressure on metals today.
