Metals were trading in narrow range on Wednesday, 11 July at LME as investors waited for the Federal Reserve report that will detail last month's decision to extend stimulus efforts. But, the Spain's Prime Minister Mariano Rajoy announcement of new austerity measures brought in some fleeted gains during the mid morning.
Meanwhile, the Chinese GDP data due on 13 July 2012 was the market's key focus, which reflects the growth situation in the world's second largest country. It also confirms the central banks to decide to go for further stimulus measures which inturn boosts demand for the base metals.
LME Copper was trading tad higher by 0.3% at $7515.25 per tonne on Wednesday and Comex Copper future for the most active September contract was trading higher by 0.5% or 2 cents at $3.4145 a pound. Shanghai Copper for delivery in October 2012 settled at 55080 yuan per tonne, down 0.4% (220 yuan). Likewise at MCX, Copper for delivery in August was trading flat at Rs 420.4 per kg.
The dollar index dropped by 0.3% at 83.11 against the basket of 6 major currencies as the mixed economic concerns in the global economy pressurizing the safe haven dollar.
Spanish Prime Minister Mariano Rajoy on Wednesday announced €65 billion ($79 billion) of new austerity measures in an effort to meet new budget-deficit targets agreed with euro-zone partners.
In industrial metal news, Copper prices should not suffer a significant decline in the coming months as global economic risks are already priced in, as per the KGHM, Europe's No.2 copper producer.
Among other metals at LME, Aluminium was trading higher by 0.2% at $1914.25 per tonne and Zinc was trading higher by 0.6% at $1844 per tonne. Lead was buoying by 0.5% at $1876 per tonne. Nickel was trading at $16275 per tonne, up 1.3%.
Among other metals in the domestic market at MCX, Aluminium was trading lower by 0.2% or Rs 0.25 at Rs 105.4 per kg while lead was trading flat at Rs 104.25 per kg. Zinc was also flat at Rs 102.7 per kg. Nickel for delivery in July tested an intraday high of Rs 907.6 per kg and low of Rs 895.2 per kg and is trading at Rs 907.5 per kg, up 0.7% or Rs 6.4.
Powered by Commodity Insights