Base metals prices yesterday witnessed range bound movement with copper prices consolidating at higher levels near 420, while nickel and zinc prices felt some weakness due to lack of fresh fundamentals. Zinc inventories rose by near 70000 tonnes just in last two sessions, which is bearish for zinc prices.
Copper prices soared to new high, above $9200 on LME, as market participants got relief from Chinese interest rate hike fear, as china raised reserve requirement to curb inflation. Further, declining stocks of copper adding positive support to prices as stocks are down by nearly 30 percent in the current year.
Goldman Sachs forecasts Copper prices above $11000 in the next year as metal price will diverge to follow their own fundamentals during 2011 as emerging market economies drive ahead and demand recovers in developed nations.
Today, bulk of US data will be released including Consumer price index, empire manufacturing, industrial production and capacity utilization, which will have a impact on base metals prices.
Today, base metals prices are expected to trade sideways, where as in copper buying is expected.
