Base metals pack delivered a mixed performance on the LME with nickel, zinc and aluminium trading in the red while copper and lead end in the green.
Unfavorable economic data from the US coupled with mixed sentiments in the global equity markets exerted pressure on the metal prices yesterday. Weakness in the US dollar cushioned further decline in prices. The us Dollar Index (DX) depreciated by 0.2 percent and closed at 75.54 on Tuesday.
Lead was the top performer on the day, as the metal gained almost 2 percent on the LME as well as on the MCX. It touched an intra-day high of S2330/tonne on the LME and closed at $2320.25/tonne. On the MCX, The metal touched an intra-day high of I05.60/kg and closed at 105.25/kg on Tuesday.
Aluminium prices declined around 1.6 percent on the LME to become the worst performer on Tuesday, The metal inventories more than 0.5 percent to 4,710,55o tonnes on the LME warehouse yesterday. Prices touched an intra-day low of $2500/tonne and closed its trading session at $25 14.50/tonne yesterday.
us copper import surge to two years high in March As per the data from the Us International Trade Commission, copper imports from the US rose more than 3o percent to 66,166 tonnes in March as compared to 50,494 tonnes in February. The imports increased as demand for the metal grew with a sustained recovery in manufacturing. In March 2009 copper imports stood at 79,975 tonnes.
Outlook
We expect base metals to trade higher in today’s trading session mainly on the back of a weaker dollar and revival in the global equity markets. But sharp gains will be capped due to ongoing Euro zone concerns which will keep prices under check.
