Brief Recovery Ends As Copper Closes Down On Wednesday

Copper...


The brief recovery that was expected to continue faded in a single day as prices again declined back. Pressure mounted again as China housing woes derailed the progress of the red metal. Rising production levels in Copper was already on the back of the minds of traders and calls that policymakers will again cool the overheating economy in China.

LME Copper three month forward prices were down by $ 32 per tonne at $ 7807 per tonne. MCX Copper tested a high of Rs 429.9 per kg and came down from there to settle at Rs 427.7 per kg, on account of profit booking.
Stockpiles maintained by LME were again up last night and has reached 520500 tonnes, up 63% this year. The rise has been phenomenal considering that its mid March only and if the pace of stocks continue to rise it will bring additional pressure on the Copper prices.
Rise in US retail sales didnt helped Copper much. The US census bureau said that the retail sales increased by 1.1% on a seasonally adjusted basis in February. The expectations were of a 0.5% rise. Meanwhile, industrial production of Eurozone fell to a seasonally adjusted 0.4% in January, compared to a expected decline of 0.1%. Year on Year industrial production declined by 1.3% in January.
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