MUMBAI(Commodity Online): Base metals are expected to trade on a mixed note in April on the back of weak manufacturing data from the biggest consumer, China and USA.

Also, mixed manufacturing data from the Euro Zone and weak manufacturing and construction data from the UK will exert downside pressure on prices. Also, economic growth in the China which has led to increase in concerns over the demand for the metals will act as a negative factor. The Federal Reserve is scheduled to meet on 30th April’14 and the decision over QE tapering will be crucial for directing price trend over the coming months, according to Angel Commodities in a monthly base metals report.

However, upbeat market sentiments coupled with weakness in the DX will cushion sharp downside or may even reverse the price trend.

With strong demand side fundamentals for Nickel, prices will trade on a positive note taking cues from the supply crunch that will finally hit the biggest consumer, China as stockpiles will be put to use. Also, concerns of supply disruption from Indonesia and Russia will continue to add upside to prices.

Copper prices will also change course given the shutdown of mines and earthquake concerns in the world biggest producer, Chile that will give rise to supply disruptions. Also, China is expected to add monetary stimulus to support growth in the shattering economy, thereby brightening prospects for the red metal.

Aluminium prices are also expected to cushion sharp downside or even reversal given the capacity cuts in the US biggest mine, Alcoa. Also, sluggish release of the metal to consumers as logjams continue in the aftermath of world’s biggest producer, Rusal winning court case against LME will support gains.On the domestic bourses, appreciation in the Rupee will exert downside pressure on the base metals prices.