Monday, 8 April 2013

Copper Halts After Three Weekly Losses


After three straight week of losses metals like Copper, Aluminium and Nickel picked some strength on the back of talks that Federal Reserve will continue to assist the markets for some more time and decline in Copper stocks after relentless rise. Copper warehouse stocks have grown more than 80 percent in 2013 and were at 2003 highs.
The fall in LME inventories by 200 tonnes gave a sigh of relief from exorbitant rise seen in last few days. The inventories are now at 579400 tonnes. The Shanghai on warrants data showed a fall of 5889 tonnes to 63006 tonnes. The fall in on warrants means that stocks to be taken out of the warehouses.
Relief rally was chipping in other metals like Aluminium as well. The LME Aluminium prices were up by $ 18 per tonne to $ 1892 per tonne. Prices of Nickel were up by $ 196 per tonne at $ 16196 per tonne.
In economic news, industrial production in Germany was up by 0.5% in February, amid expectations of 0.3% increase. On an annualized basis, industrial production fell by 1.8% in February. Meanwhile, Yen was at four years low against the Dollar as Bank of Japan remained adamant to bring its economy out of recession. The Bank of Japan has purchased 1 trillion Yen of bonds with maturity of five and ten years as a part of government bond purchasing operation. Apart from that the Bank also purchased 200 billion yen worth of bonds maturing in more than 10 years.
Indian Copper prices were at Rs 409 per kg, up 0.9% when last checked, with a intraday high of Rs 409.6 and a low of Rs 407.2 per kg. Steel material Nickel was at Rs 887 per kg, up 1.1%. MCX Zinc was trading at Rs 103 per kg, up 0.3%.
Source by Commodity Insights

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