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Weekly Commodity Research Reports

Base Metal Weekly from 21st January - 24th January 2013

Base Metals may continue to trade in a narrow range this week amid mixed global cues

On a weaker note prices may come under pressure tracking sluggish demand in China's physical market. Putting further pressure on the prices is uncertainty over US fiscal crisis as the lawmakers will struggle to reach agreement on raising the nation's debt limit. Also putting pressure is firmness in US Dollar.

On Fundamentals front, rising stocks of most of the metals at exchange warehouses coupled with expectation that most metals will be in supply surplus may also put pressure on the prices

The downside may however be capped amid hopes of robust demand from China and US tracking better than expected data from both the region. Also easing worries over debt crisis in Euro Area may lend support to the prices.

Prices may further seek support from steadiness in global equities and higher cancel warrants of most of the metals at LME warehouses

Prices will further track economic releases from US, Euro Zone and China. Major focus will be on US Housing and Regional Manufacturing data and Flash Manufacturing PMI of Europe and China

Overall, prices may trade sideways amid mixed cues. On weaker note sluggish demand in spot market coupled with uncertainty over US debt ceiling may put pressure on the prices while hopes of robust demand from China and US may cap the downside.

Copper prices may trade in a broad range of Rs. 432 - Rs. 445. Selling on rallies is recommended at higher levels tracking weak fundamentals. In other metals Aluminum prices may trade in a range of Rs. 117 - Rs. 112 while Nickel prices may trade in a range of Rs. 920 - Rs.965. Selling on rallies is recommended for both the metals tracking weak demand outlook.

Zinc may trade in a range of 106 - 112. Rising stocks coupled with weak demand may continue to put pressure on the prices. Lead prices too may decline towards Rs. 121 levels however buying is recommended at those levels for target of Rs. 125 and 127.


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