Metals are pulling back from their lows on account of technical buying. The prices were finding tough to move down further due to already oversold levels and that has induced cherry picking in Non ferrous metals. LME metal was marginally down but it seems that it will be the second day when the prices of Copper will end upwards. MCX Copper was trying to breach Rs 430 mark that will encourage metal towards Rs 432-434 per kg levels.
The news of higher inventories seemed to be discounted at the moment and it is expected that it will play a role only after few days of relief rally. LME Inventories gained by 2600 tonnes to 520500 tonnes on Wednesday. Rising production levels across the world is worrying metal participants. Fundamentally, mood is still grim considering the lower demand in China that was herding most of the metals on the positive side.
Rupee continued to support Indian future contracts. The weakness in Rupee is on account of flight towards investments in US Dollar. European leaders are still not concerned that the inflation will become a issue in near term. Indian Rupee was trading at 54.24 per Dollar, down 0.12%. Even after policy steps taken by the Indian government the markets are not convinced on the application of the measures. The current account deficit in the country is high and the rate of GDP has come down below 6%.
In ferrous metals space, Iron ore prices were a reason of worry for traders. The prices of 62% Iron content tested a two and half month lows. Heavy rise in steel production and oversupplies is holding back the Chinese buyers to restock Iron ore. The prices of 62% Iron ore declined to $ 144.1 per tonne, making it the lowest level in a year. The rapid fall in the Iron ore prices is a bad news for world major iron ore producers. Companies like Rio Tinto have slowed down the progress of its Simandou Iron ore deposit.
Steel making raw material like Nickel was seen at $ 17063 per tonne in LME exchange, up almost $ 40 per tonne. MCX Nickel was recovery after the bashing towards November 2012 levels. The prices were seen trading at Rs 927.4 per kg, up 0.4%.
MCX Copper was trading at Rs 429.5 per kg, up 0.29%. The prices have tested a high of Rs 429.75 per kg and a low of Rs 427.1 per kg so far in the trading session. Further appreciation can bring levels of Rs 432 per kg in the contract.
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