Base metal prices on the futures exchange in India and London were trading lower today tracking economic data released from China and the debt-ridden Eurozone nation.
China's HSBC flash manufacturing purchasing managers' index was lower than expected today, which dragged base metal prices down, with expectations of a fall in demand from China, the world's largest exporter and consumer of most base metals, Priyanka Jhaveri, analyst with Kotak commodity Services, said.
However, from the Eurozone region, after a week of unexpected positive data, indices released today were not encouraging, said analysts.
France's flash manufacturing purchasing managers' index and Germany's flash services PMI were better than previous, but lower-than-expected flash services PMI from France and manufacturing PMI from Germany discounted any upside that could be possible today.
Copper for three-month delivery on the LME was down 1.7% at $8,053 per tonne today.
Tracking weakness in European and Asian equities in the market today, the dollar strengthened against most Asian currencies and the Euro, pulling base metals in London further lower. A firm dollar drags prices of dollar-denominated commodities.
However, in the local markets, a weak rupee against the dollar today limited the fall in commodity prices on the MCX to an extent. The benchmark copper contract on the MCX was trading at Rs 421.55, down Rs 3.80 or 0.9% lower today.
Sluggish demand from alloy-makers in the country also kept metal prices lower in the local market place.
Nickel contract on the LME was trading at $17,638 per tonne, down $167 from previous close, while on the MCX it was at Rs 925.70, dragged by Rs 4.60 from previous close.
"In the absence of any significant data in the later part of the day, base metals are likely to trade lower," Jhaveri said.
