China today came out with slower inflation numbers reinstating talks that the stimulus measures were required to rejig slowing economy. The Consumer Price Index (CPI) of China eased to 1.8% in July. China Producer Price Index (PPI) was down for the fifth consecutive month to 2.9%, according to the National Bureau of Statistics. Calls for support for Chinese economy don't seem to bother metals much. The metals were in a cheerful mood during the electronic trades in Asia but the rally seemed to fade soon as European markets started.
LME Copper has lost all the rally of early trades and was seemed to be thirsting at $ 7528 per tonne, up by only $ 3. The metals seemed to be more concerned by Chinese import numbers due tomorrow. The numbers are expected to indicate another month of lower imports in July. This is due to the fact that China has stocked ample amount of Copper this year while demand has not kept pace with these numbers. MCX Copper is trading at Rs 418.2 per kg. Most of the day saw pretty limited activity with Copper in the range of Rs 419.8 and Rs 417.5 per kg.
Aluminium slipped in losses at $ 1904.2 per tonne on Thursday down from $ 1907.5 per tonne on Wednesday. MCX Aluminium was unchanged at Rs 104.4 per kg. Trading interest has seen some improvement with domestic Aluminium up 2.1% in last three sessions. Upward move from here can take Aluminium towards its resistance of Rs 105.8 per kg.
India came out with dismal IIP numbers today. IIP growth was negative 1.8% in the month of June compared to 9.5% in the corresponding period last year. The major indices in IIP i.e Mining, Manufacturing and Electricity grew by 0.6%, -3.2% and 8.8% respectively in June 2012 compared to last year. Reserve Bank has already specified that the monetary policies would be eased only when inflation comes under control. Higher interest rates have thereby impacted the growth of major industrial sectors.
Key data from US is due to be released today. The US is due to release initial jobless claims data and New housing price index for the month of June. Positives from US will support the prices of base metals. US Dollar can play a spoil sport for metals as traders will fetch opportunity to take positions in safe haven during Thursday. Dollar is currently trading at 1.231 against the Euro, up 0.44%.
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