Falling Dollar and supply disruptions by union workers of Chile
Codelco supported the metal for the second straight day in a row. LME
Copper three month prices moved up by $ 32 per tonne as Dollar moved
further lower against the Euro for the fifth trading session. A heavy
rise of 8150 tonnes of Copper inventories in LME was digested by the
players. The inventories have reached 2003 highs and are at 587550
tonnes. Copper miners in Chile conducted a one day strike to press for the need of job security in mining sector in the country. The supplies of Copper are expected to be impacted by the strike. This favored the buying in red metal.
In currency markets, Dollar moved down by 0.12% to 1.3035 against the Euro. In last five days, Dollar has broken 1.5% of its value against the European counterpart. Dollar declines bring support to the commodities. Indian Rupee was seen at 54.62, down 0.13% against the Dollar.
In economic news, 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.
Germany reported a rise in trade surplus in March due to weakness in imports and stable exports. The trade balance was Euro 17.1 Billion compared to Euro 15.6 billion in February. The analyst's expectations were of narrowing down of surplus to Euro 15.1 billion. LME Copper was last seen trading at $ 7523 per tonne. Indian MCX Copper contract was trading at Rs 410 per kg, up 0.55%. The metal tested a high of Rs 410.7 per kg and a low of Rs 408 per kg.
Warehouse stocks of Aluminium declined by 9825 tonnes to 5203150 tonnes. The stocks of LME Aluminium have declined by 0.25% in 2013 so far. LME Aluminium three month prices were seen at $ 1893 per tonne, down $ 6 per tonne. The prices of MCX Aluminium were at Rs 102.45 per kg, down 0.10%.
Source by Commodity Insights
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