Thursday, 25 April 2013

Indian Copper Troubled By Rise In Indian Rupee

Decoupling between London Metal Exchange and MCX Copper prices was noted in the evening session trades. The prices of Copper in Indian futures platform of MCX was dragged down on every rise due to volatility in Indian Rupee even as LME saw recovery for second consecutive day.
INR was trading with a bounce of 0.15 percent against the Dollar when last seen at 54.15. The Dollar was also lower by 0.4 percent against the Euro at 1.3062. Crucial reports from US are lined up in today's trades including initial and continuing jobless claims. US Secretary of Treasury Jacob Lew is due to speak today that will pave way for further trades in Forex markets.
Rise in INR was challenging the rise in Copper that was exchanging hands at Rs 381 per kg. The prices remained in a skewed Rs 4 range. Red metal has tested a high of Rs 383.4 per kg and a low of Rs 380 per kg so far in the day.
Meanwhile, LME Copper continued to move from strength to strength. Copper three month prices were at $ 7055 per tonne, up from $ 6973 per tonne from last night. Today, inventories of Copper supported the rise. Copper stockpiles were down by 1900 tonnes on intraday basis to 618475 tonnes.
Aluminium recovered for the second straight day as traders started to build some long positions after a debacle this week. Heavy correction in the metals has increased speculation for buying in metals. LME three month Aluminium delivery contract was trading at $ 1918 per tonne, up 1 percent.
In another news, World primary Nickel production is expected at 1.86 million tonnes in 2013, up 5.7 percent from 2012. Primary Nickel usage is expected to increase by 7.3 percent to 1.77 million tonnes. World Nickel markets are estimated to be in surplus of 90000 tonnes in 2013, as per International Nickel Study Group (INSG).
LME three month Nickel prices were trading at $ 15202 per tonne, down by a marginal $ 45 per tonne. The prices have corrected by more than 10 percent so far in 2013 after a correction of 7 percent in 2012. MCX Nickel was seen at Rs 822.4 per kg, down 0.32 percent.
Source  by Commodity Insights

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