Copper recovered for the second consecutive day after the news of strike
threats by Chilean workers underpinned the metal. LME three month Copper
prices moved up by $ 78 per tonne at $ 7490 per tonne. The metal has
further moved to $ 7520 per tonne on Tuesday. Union workers in Chile Codelco have announced a nationwide strike today asking for greater job security. Workers in other organization Anglo America, BHP Billiton and Antofagasta are also planning for similar strikes. These companies are biggest producers of Copper and strike threats are giving premium to the seven month low prices of red metal.
Meanwhile, China has reported decline in CPI inflation numbers representing a weakening in demand. Copper and metals that are riding on the back of strike threats are likely to sideline this cue in the coming days.
Data from National Bureau of Statistics has said that Consumer Price Inflation (CPI) has grown by 2.1 percent year on year in March. The CPI was at 10 month high of 3.2 percent in February. On a month-on-month basis, food prices in China dropped 2.9 percent in March.
Among other metals, Nickel has been moving higher on the back of bottom fishing at discounted levels. Lackluster manufacturing sector in China and high inventories is a worry for Nickel prices. Most of the base metals these days are losing strength due to heavy pile up of inventories.
LME inventories have increased 19.56 percent to 166284 tonnes. LME Nickel three month prices were at $ 16214 per tonne compared to $ 16180 per tonne on Monday. MCX Nickel closed at Rs 881 per kg, up 0.42 percent.
MCX Copper April expiry contract closed at Rs 407.9 per kg, up 0.56 percent. The prices tested a high of Rs 410 per kg and a low of Rs 406.7 per kg in the day. Further moves upwards can take prices towards Rs 412 per kg.
Source by Commodity Insights
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