Base Metal Updates

Industrial metals remained elevated on Monday backed by positive hopes on resolution of US crisis and gains in Euro currency against the Dollar. The greenback maintained its dullness against the Euro and was down 0.28% at 1.2771 when last seen.
The hopes were generated as congressional leaders said that the last week meeting with President Barack Obama. The US president is urging leaders to find a comman platform for tax and spending cuts.
The fall in Dollar has been on account of industrial production data released last week. US industrial production fell to -0.4% in October, from 0.2% in the month of September.
In Italy, new industrial orders declined by more than expected in October. The report by Istat showed that the new orders declined to -4% from 0.6% in September.
On Monday, LME Copper was almost at similar levels of January 2012. Copper was ruling at $ 7679 per tonne in January 2012 and was seen trading at $ 7695 per tonne on 19 November, up by $ 112 per tonne from last week.
Today, LME Copper inventories saw a decline of 1125 tonnes to 254050 tonnes. Though in the last few months a buildup in Copper stocks has been noted yet the stockpiles are down 31 percent in this year.
MCX Copper repeated the rangebound journey it saw last week. The metal was trading I a minute range of Rs 2.5 until evening trades. November benchmark contract had tested a high of Rs 424 and a low of Rs 421.8. The prices were at day's high of Rs 424 per kg, up 0.50%.
Shanghai Copper January benchmark contract has declined by 1080 yuan this month. The total open interest in November has also come down to 82844 contracts, down 36726 contracts. The fall in Copper open interest along with prices in indicator of long positions liquidation.
LME Zinc inventories remained piling upwards on the back of financing deals. Huge surplus in the metal is resulting producers to indulge in such deals in order to mortgage it for short term finance.
Zinc inventories gained by another 15700 tonnes today to 1176675 tonnes. The inventories have increased by 43% in 2012. These are all time high levels for Zinc inventories in London Metal Exchange.
LME Zinc forwards were up by $ 7 per tonne at $ 1930 per tonne. Zinc seemed to face resistance at $ 1932 per tonne in the day after a high at $ 1933 per tonne in the session. MCX Zinc was sideways at Rs 105.3 per kg.

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