Base metals prices managed to hold earlier gains today as euro recovered against dollar amid sliding stocks supported positive trend. Copper prices recovered from $8000 level on LME and above this level prices are likely to trade with positive bias.
Along with copper other metals including nickel, lead and zinc also noted increment in prices. The complex continued to bask in the sunshine of its woozy ascent over the previous week and quarter, which saw prices soar due to tightening supplies and increased risk appetite among investors.
Strong manufacturing data from China and a weaker US dollar remained the main factors behind current rally.
Pending sales of previously owned U.S. homes rose to four-month high, while new orders received by U.S. factories fell by 0.5 percent in August.
The International Copper Study Group said that the global market for refined copper is expected to swing into a 400,000 tonne deficit for 2011 as increased economic activity boosts demand to outstrip growth of refined production.
ICSG said in a note that in 2011, refined usage is again expected to increase in all major world markets, with global demand expected to rise by about 4.5%. Industrial demand growth for copper in China, which is based on anticipated semi manufacture production, is expected to grow by about 6 percent in 2011
Copper has resistance of $8200 at LME and `366 in MCX with support lies at 360. And Zinc has support of 98.5 and resistance of 100. Nickel getting support at 1065 and resistance near 1085. Lead has support at 100.50 & resistance at 101.50
