BASE METALS
DATE: 17/04/2012
Copper: MCX Copper may note some decline tracking international exchanges, however the downside remains capped. LME Copper is trading slightly lower in early trades today amid growing worries over weakening demand for copper. Also putting pressure on prices renewed worries over debt crisis in Euro Zone. Prices may further come under pressure amid firmness in US Dollar, choppiness in equities and higher stocks at SHFE warehouses. The downside may however be capped amid better than expected retail sales data from US and falling stocks at LME warehouses. Stocks fell by 2,700 tons yesterday however cancelled warrants eased to 24.85%. Prices may further track economic releases and its impact on movement in global equity and currency markets. As for today, focus will be on Euro Zone ZEW economic sentiment, Spanish Bond Sale, US Housing data and Industrial production.
Aluminum: MCX Aluminum may note some gains tracking international exchanges, however the upside remains capped. Prices may come under pressure amid slight retreat in copper prices and record high stocks at LME. Stocks at LME fell by 7,425 tons yesterday but continue to hover around record high levels; while those at SHFE rose by 579 tons.
Zinc: MCX Zinc may note some decline tracking copper prices. Also higher stocks at LME warehouses coupled with lack of demand in physical markets may continue to weigh on the prices. Stocks at LME rose by 942 tons yesterday after gaining 7,525 tons last week and are near 17 year high levels.
Nickel: MCX Nickel may note some decline tracking international exchanges. Weighing on prices is slight rebound in US Dollar and choppiness in equity markets. However falling stocks at LME warehouses may cap the downside. Stocks fell by 775 tons yesterday after declining by 1,758 tons last week.
Lead: MCX Lead may some decline tracking copper prices. Also putting pressure is higher stocks however recent jump in cancelled warrants at LME coupled with expectation of robust demand from China may cap the downside. Stocks at LME fell by 725 tons yesterday after declining by 1,975 tons last week while cancel warrants stood at 6.37%.
POWERED BY: commodity insights
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