Base metals prices have been trading choppy on back of fresh fundamentals. Yesterday economic data from US also painted mixed picture. Copper and nickel prices trading sideways while lead and zinc prices witnessed some downside. Aluminium looks strong in base metal complex. US Empire State manufacturing index declined to 5.1 in July as against 19.6 in June. U.S. weekly jobless claims fell to the lowest level in two years on Thursday due to temporary factors. The producer price index for finished goods fell 0.5% on a seasonally adjusted basis last month more than the 0.2% decline anticipated. Core prices advanced 0.1% last month, as expected.
LME nickel stocks maintained their downtrend in June, ending the month at 123,678 tonnes, or around 32 days of demand, down from 138,396 tonnes the previous month. Inventories continued to decline in early July and were at 119070 tonnes, their lowest in around nine months. In early February, LME inventories reached an historic high of 166,476 tonnes.
Lisbon-based International Lead and Zinc Study Group's reported global zinc market was in surplus by 209,000 tonnes in the first five months of the year. Global refined zinc use was 4.992 million tonnes compared with 4.114 million in January-May 2009. World refined zinc output rose to 5.201 million tonnes from 4.374 million a year earlier.
Global lead market was in surplus by 34,000 tonnes in the first five months of the year. Global refined lead use was 3.495 million tonnes compared with 3.408 million in January to May 2009. World refined lead output was 3.529 million tonnes, up from 3.502 million a year earlier
Technical View
MCX Copper (Aug) has strong support at 311 with resistance at 315.50
Nickel has resistance at 915 with support at 900.
Zinc support lies at 84.50 and resistance at 85.50
