Saturday, March 24, 2012


Base metals may remain on volatile path as movement of Greenback,q concerns about euro zone, easing Chinese growth and inflation figures will give keep the sentiment cautious. China's annual inflation is seen decelerating to a 1-1/2-year low of 3.4 percent in February, and coupled with expectations that factory output for January-February would be at the lowest since August 2009, should give Beijing more scope to loosen monetary policy to spur growth. Copper prices may trade in range of 410-430 in MCX while nickel may trade in range of 900-980. The world's No. 3 copper mine, Chile's Collahuasi expects output this year to beat the 453,000 tonnes produced in 2011. China's copper demand will growby at least 6 percent in 2012 given the power sector's unflagging appetite for the metal.Aluminum prices can trade in range of 108-113 in near term while lead can trade in range of 103-110. Chinese Premier Wen Jiabao cut his nation's growth target to 7.5 percent for 2012 to give the economy more room to slowdown if neededwhile the government carries out promised economic and welfare reforms ahead of a looming leadership transition. Production at the Zambian flagship copper mine of Canada's First Quantum Minerals has ground to a halt because of a strike over wages. Increasing cost of raw material is expected to support the steel long prices as it can test 35500 per tonnes in NCDEX soon.