Base Metals Market Update and Commodity Trading Strategy: Nirmal Bang

Base Metals Market Update and Commodity Trading Strategy: Nirmal BangBase metals futures ended down on Friday after getting swept up in a dollar-induced sell-off across the broader commodity complex that pulled the price of the metals back down from the prior day's gains.

Aluminum and Copper futures were hit the most, shedding over 2 percent each on LME while Nickel lost the most on MCX, losing around 1.5 percent.

Zambia mines minister Maxwell Mwale said on Friday the southern African country plans to re-open the Munali nickel mine within the next month after the operation was suspended in March due to low nickel prices.

Chile's Collahuasi copper mine, owned by global miners Xstrata Copper and Anglo American, should reach an annual output of 1 million tonnes of copper by 2015.

We may see some more profit taking during the day after sharp upside in the last week. China may not buy industrial metals at current rate and demand from rest of the world also remains poor which may result in some selling pressure during the day. We remain bullish on Aluminium as we expect more draws at LME Warehouse, mainly from Asia.