The base metals complex traded higher on the LME on Monday mainly on the back of dollar weakness. The US dollar depreciated 0.3 percent and closed at 74.90 yesterday. But sharp gains were capped due to choppy sentiments in the global equity markets. Rupee appreciation resisted further gains on the Indian platform on Monday. Zinc was the best performer of the day, as the metal gained almost 1.5 percent on the LME and around 1.2 percent on the MCX. The metal touched an intra-day high of $2192.75/tone on the LME on Monday and closed at $2176.50/tonne. On the MCX, the metal touched an intra-day high of `97.90/kg and closed at `97.10/kg yesterday. Following zinc, copper gained more than 1 percent on the LME and became the second top gainer on Monday. The red metal prices touched an intra-day high of $8970/tonne and closed its trading session at $8888.75/tonne. MCX copper May contract rose almost 1 percent and close at `402.30/kg yesterday. China April copper imports declined 262,676 tonnes As per the data by the General Administration of Customs released today, China’s copper imports declined 13.7 percent to 262,676 tonnes in April as compared to 304,299 tonnes in the previous month. Outlook We expect base metals to come under pressure mainly on the back dollar strength, mixed global market sentiments and increasing worries with regard to Euro zone debt crisis. Courtesy: Angel Commodities

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