Base metals outlook by Kotak Commodities

Kotak Commodities has come out with its report on base metals.

Base Metals:

Highlights:

• LME Copper trades higher Tuesday after 0.9% slide yesterday
• Higher equity markets and Euro support copper prices
• The US dollar index trades marginally higher after flat close yesterday
• Asian equity markets trade higher tracking gains in US markets yesterday
• A 6.3 magnitude earthquake struck Chile on Monday but no damage was reported at major mines
• Focus today on situation in Greece, US existing home sales and API weekly report.

Market Analysis:

LME Copper trades higher Tuesday after a 0.9% slide yesterday. Copper fell as low as $8900/ton in intraday trade yesterday but recovered to end above $9000/ton level. Recovery in copper has lent some support to other industrial metals as well.

Copper fell in intraday trade yesterday as uncertainty regarding Greece and weakening outlook for the US economy dented market sentiments. However copper and other commodities recovered later in the day amid stability in US equity markets.

Outlook:

Copper- MCX Copper may note some gains tracking cues from international exchange. LME Copper has shown some recovery after the sharp slide yesterday. Supporting prices is stability in equity markets and pause in dollar

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