Non Ferrous metals gained on World Bank forecast of strong economic growth in 2014. Global growth is expected to reach at 3.2%, developing countries will grow at the rate of 5.3% and high income countries are expected to grow at 2.2%
Global economic indicators show improvement. But one does not have to be especially astute to see there are dangers that lurk beneath the surface. The Euro Area is out of recession but per capita incomes are still declining in several countries. We expect developing country growth to rise above 5 percent in 2014, with some countries doing considerably better, with Angola at 8 percent, China 7.7 percent, and India at 6.2 percent. But it is important to avoid policy stasis so that the green shoots don't turn into brown stubble, said Kaushik Basu, Senior Vice President and Chief Economist at the World Bank.
Next week we are having China, France and German manufacturing PMIs. Emerging markets are expected to grow by 5.3% from earlier 4.8%. US and euro zone are expected to perform better during this year with the rate of 2.8% and 1.1% respectively. Forecast of better growth rate may accelerate expectation of positive manufacturing indices which may further support metal market.
We may see copper near to ‚¹465 and Nickel near to ‚¹910 during next week. We may see little fall in prices as investors may book profit at present high level. Ore export ban by Indonesia may keep Nickel boom in the market.
Falling inventory and prospective economic functioning indicate high demand and better prices in near future.