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Mixed Trend In Base Metals On Us Economic Data

Published 03/23/2012, 12:36 AM
The base metals pack delivered a mixed performance on the LME on Wednesday with aluminium, nickel and zinc ended in the red while copper and lead managed to end in the green.

Weak sentiments in the global markets coupled with unfavorable economic data from the US acted as a negative factor for the metal prices on Wednesday.

However, depreciation in the Indian Rupee cushioned sharp decline on the domestic bourses in case of aluminium, nickel and zinc in yesterday’s trading session.

Copper

Copper, the leader of the base metals complex, rose slightly by percent on the LME as well as on the MCX on Wednesday.

Rise in copper imports from China coupled with continuously falling LME copper inventories acted as a supportive factor for prices.

The red metal inventories declined sharply by 1 percent to 258,325 tonnes on the LME warehouses on Wednesday. On a month-to-date basis, copper inventories dropped sharply by almost 13 percent from 296,425 tonnes in the end of February.

On a month-on month basis, China’s imports of refined copper increased sharply by 12 percent to 375,831 tonnes in February’12 from the previous 335,480 tonnes in January’12.

Imports surged sharply by 137.6 percent from a year earlier, according to the data from the General Administration of Customs. On a year-to-date basis, refined copper imports rose 76.2 percent (y-o-y) to 711,311 tonnes in the first two months of 2012.

Crude Oil Trades Higher On Rising Inventories
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Nymex crude oil prices increased by more than 1.5 percent in yesterday’s trading session taking cues from unexpected decline in US crude oil inventories.

However, further upside in prices was restricted on account of mixed sentiments in the markets.

Crude oil prices touched an intra-day high of $107.64/bbl and closed at $107.3/bbl on Wednesday.

On the MCX, Crude Oil April contract increased by 0.9 percent and closed at Rs.5443/bbl after touching an intra-day high of Rs.5467/bbl yesterday.

EIA Inventories Data

As per the US Energy Department (EIA) report released yesterday crude oil inventories unexpectedly declined sharply by 1.2 million barrels to 346.3 million barrels for the week ending 16th March, 2012.

Gasoline stocks fell by 1.2 million barrels to 226.9 million barrels and whereas distillate stockpiles rose by 1.8 million barrels to 136.6 million barrels for the last week.

Precious Metals Edge Higher On Global Economic Concerns

Spot Gold prices rose slightly by 0.1 percent on Wednesday and touched an intra-day high of $1661/oz.

Rise in crude oil prices boosted the inflation-led demand for gold which acted as a positive factor for the yellow metal prices yesterday.

Gold prices ended its trading session at the level of $1649/oz on Wednesday. On the MCX, Gold April contract rose around 0.2 percent yesterday and hit an intra-day high of Rs27,940/10 gms.

Silver

Taking cues from rise in gold prices, spot silver prices gained around 0.2 percent on Wednesday. However, sharp gains were capped due to mixed performance in base metals complex yesterday.
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The white metal touched an intra-day high of $32.37/oz and ended its trading session at the level of $32.2/oz on Wednesday.

MCX Silver May contract witnessed gains of around 0.7 percent on account of a weaker Rupee and touched an intra-day high of Rs57,075/kg yesterday.

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