Copper.....
The supply side glut in Copper is making the sentiments considerably
grim and dull. The closure of SHFE metal exchange can slow down the
volumes yet the trend still looks bearish. The Copper inventories have
been a major reason for worry. The inventories increased by 1200 tonnes
to 572325 tonnes on Wednesday. This is the highest level for inventories
since 2003. LME three month Copper was trading at eight month low at $
7333 per tonne on Thursday, down $ 103 per tonne.
In US,
Institute of Supply Management data showed that the Non manufacturing
index registered 54.4 percent in March, 1.6 percent lower than the 56
percent registered in February. This indicates slower rate of growth in
the non-manufacturing sector. The Non-Manufacturing Business Activity
Index registered 56.5 percent, which was 0.4 percentage point lower than
the 56.9 percent reported in February.
Meanwhile, The approval of
Copper ETF by JP Morgan Chase on December 14 was upheld on 28 March
2013. The Copper users were trying that the decision will be reversed.
After the decision it is clear that Copper ETF will form part of markets
and can create investment demand for the metal that is suffering from
high supplies in the markets at the moment.
Dollar was trading
marginally lower against the Euro in early Asian trades. Dollar is
trading at 1.2848 against the Euro, down 0.05%. Indian Rupee has opened
sharply lower against the Dollar and was seen at 54.59, its one month
low. The local currency is down by 0.31% in intra day. Metals are
expected to get some support from falling Rupee.
Indian Copper
was down by 1.3% to Rs 403.3 per kg. The prices tested a high of Rs
408.7 per kg and a low of Rs 403 per kg in intraday. The prices are
expected to breach Rs 400 per kg provided the market moves in tandem
with LME and sidelines local currency moves.
Among other metals,
MCX Nickel breached Rs 900 per kg yesterday and moved sharply lower. The
prices were at four month lows and settled at Rs 879 per kg, down
almost 2%. Supports for the contract are at Rs 875 per kg while
Resistance is at Rs 885 per kg.
Source by Commodity Insights
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