Current Scrap Metal Prices

The economic downturn is hurting financial markets across the globe. Prices of base metals are expected to remain under pressure until physical buying demand from China sees a u-turn. Hopes are high on the Chinese stimulus package, that it could revive the physical side market in the year FY2009. However, the current situation is bleak as the commodities market is showing a coupled performance in accordance with global equities. This is because a decline in corporate profits could translate into lower demand for raw materials. Also, the currency factor is playing a crucial role in determining prices. In the coming days we could continue to witness volatility in prices as markets remain susceptible to decline in equity markets.

Copper and Aluminum prices are expected to remain under pressure as inventories for both these metals are rising sharply amid an economic slowdown that is hurting demand. Markets are expected to remain volatile as economic data suggests that the world in entering a deep and long recession that could continue throughout the next financial year.

On the macroeconomic front, the US is expected to announce data on initial claims, leading indicators and Philadelphia Fed today. The data is expected to come on the weaker side and could weaken sentiments in base metals. These economic indicators show that the economic situation is very weak.

Copper

Copper prices have been trading lower for past few trading sessions with immediate support seen at Rs.145.40 levels for MCX Feb contract. Further below, support is seen at 142.30 levels.
Whereas resistance is seen at Rs.151.70 levels & further upwards at Rs. 154.20.

Zinc

Immediate support is seen at Rs.50.40 levels for MCX December contract whereas crucial support is seen at Rs.49.10 levels.
Short-term resistance is seen at Rs.52.60 whereas major resistance is seen at Rs 53.80.

Source: www.commodityonline.com