Wednesday 12 June 2013

Copper Down For Fifth Straight Session

Copper........
Copper declined for the fifth consecutive day on Wednesday on the speculation that the US Federal Reserve will not be continuing with its stimulus plans. The outlook of demand from China also posted big pressure on the prices.
LME three month prices were last seen trading at $ 7064 per tonne, compared to $ 7070 per tonne on Tuesday. The metal declined by $ 80 per tonne last night. On MCX, Copper was stable until the evening trades but reversed all the gains and chopped 1.5 percent of its value to end at Rs 410.8 per kg.
The metal tested a high of Rs 421.5 per kg and a low of Rs 410.6 per kg. Inventories of Copper were at 609250 tonnes on 11 June. The total stockpiles have increased by 90.3 percent on Monday. The worries of heavy stocks of Copper were tamed a bit after the report of Force Majeure in Freeport Grasberg mine.
The mine is expected to restart in about three month's time and till that period the supplies will remain disrupted. Refined Copper markets showed a production surplus of 40000 tonnes in February 2013, this was due to low refined metal demand.
RBI intervention has given Indian Rupee some leg space. The domestic currency was sharply moving downwards until last night and tested a record low of 58.38 against the US Dollar. RBI purchases of Rupee have brought some gains in early Asian trades. The currency was trading at 58.24 per Dollar.
Other metals like Nickel also faced a sharp contraction when prices slipped to $ 14550 per tonne, down $ 395 per tonne on Tuesday. MCX Nickel was the worst performer in the base metals pack, ending at Rs 844.1 per kg, down 2.7 percent.
Source by Commodity Insights

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