Metals Still Not Out Of The Woods

Advisory Dats:------

Traders are taking metals cautiously ahead of the Fed meet that has for some days caused confusion in the Non ferrous space. Thursday was again a mixed day for metals. Asian traders saw Copper and peers elevating after the comments from Chinese Premier Wen Jiabao. He was confident that the European debt crisis would be solved and reinstated his commitment to buy European bonds. The advance of Dollar in the last session led to mixed session in metals. The Dollar ended with gains of 25 pips at 1.2504 against the Euro. Early morning trades on Friday are showing some respect for Euro with greenback at 1.2517.
LME Aluminium ended with losses of $ 5 on Thursday at $ 1890 per tonne. Domestic Aluminium prices closed at Rs 103.5 per kg, down 0.63%. The decline in inventories is pressuring Aluminium now. The metal was prospering due to supply shortage for end users in short run due to warehousing deals but with drawdown in inventories it is clear that the metal is coming into markets. This is negative for Aluminium in coming days. Thursday saw a decline of 10700 in Aluminium inventories that now stand at 4878950 tonnes.
Copper was the survivor from sell off in LME metals. LME three month Copper gained $ 84 to close at $ 7624 per tonne on 30 August 2012. Here also the inventories showed declines but it had contrarian impact on the metal. Due to deficit of Copper in world markets and ageing ore mines this metal is well supported. The beating it has taken in this year is mainly due to European crisis and sluggish growth in US. Copper inventories declined by 3850 tonnes to 230175 tonnes on 30 August 2012.
LME Nickel gained $ 85 per tonne to close at $ 16360 tonnes. Nickel is running on the back of bottom fishing and attractive levels after heavy declines in one year. The fundamentals are still weak considering the health of stainless steel sector due to which many producers have been forced to cut the prices of products in China. MCX Nickel behaved differently and ended with losses of 1.44% to Rs 891.4 per kg. This was a one month low level for the metal in Indian futures exchange.
http://www.commoditytipsadvisory.com/