Sell industrial metals on rise: Nirmal Bang

Nirmal Bang has come out with its report on base metal. According to the research firm, industrial metals prices are trading lower on international bourses today. Expect a further decline in the prices of industrial metals on account of a weaker than expected manufacturing data from US and China. Selling on rise is recommended for the day.

Industrial metals prices sank yesterday to their lowest levels since last summer on concerns about waning demand after weaker-than expected manufacturing data from China, the world's No. 1 copper consumer, and the United States, the world's biggest economy.  Early indications of Japan's copper output from April to September in 2013 show a slowdown from the previous year despite a weaker yen, which in theory improves export competitiveness.  China's steel oversupply problems are likely to worsen in 2013 with new capacity increases expected to outstrip rising demand over the year, the chairman of Baoshan Iron and Steel (Baosteel) 600019.SS, the country's biggest steelmaker by market value, said on Monday.

Sterlite Industries (India) said on Monday that the southern state of Tamil Nadu has ordered it to shut a copper smelter over allegations of a gas leak, in a move that could spur imports and drive up regional premiums for the metal.  Rio Tinto has rejected a New Zealand government offer of a short-term subsidy to prop up a loss-making aluminium smelter and will try to reach an agreement on cheaper power prices directly with the electricity firm, the Prime Minister said on Tuesday. Workers at Codelco's Radomiro Tomic copper mine have agreed to lift their labor stoppage and return to work, the Chilean state company told Reuters on Monday morning.

Fundamental Outlook:

Industrial metals prices are trading lower on international bourses today. We expect a further decline in the prices of industrial metals on account of a weaker than expected manufacturing data from US and China. Selling on rise is recommended for the day.

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