BASE METAL REPORT OF 2ND DECEMBER 2014

Base Metals & Energy

Daily Buzz 

                         COPPER

Copper prices fell by 1.18 per cent on Monday at the domestic markets after research group Markit said the euro zone’s manufacturing PMI fell to 50.1, from 50.4 in the preceding month signaling weak manufacturing activity in the region which reduced the demand outlook for the metal. At the MCX, copper futures for February 2015 contract were trading at Rs.393.70 per 1 kg, down by 1.18 per cent, after opening at Rs. 396.10 against the previous closing price of Rs. 398.40. It touched the intra-day low of Rs. 390.40 till the trading. (At 3.20 PM today). Sentiment weakened further due to the surge in the copper stockpiles at the London Metal Exchange (LME) on account of the weak demand for the commodity. LME copper stocks rose by 500 metric tonnes to 164800 metric tonnes as on December 1, 2014.

                                                         ZINC

Zinc prices fell by 0.94 per cent on Monday at the domestic markets after China’s manufacturing slowed sharply last month, signaling a worsening economic slowdown in the world’s biggest metals consumer, dimming the demand outlook for the base metal. China’s manufacturing gauge fell to an eight-month low of 50.3 in November from 50.8 in October. Zinc futures for December 2014 contract, at MCX, were trading at Rs 136.55 per kg, down by 0.94 per cent after opening at Rs. 137.30 against the previous closing price of Rs. 137.85. It touched the intra-day low of Rs. 136.10 till the trading. (At 3.23 PM today).London Metal Exchange (LME) zinc stocks remained unchanged at 673000 metric tonnes as on December 1, 2014.