Copper Pares Some Losses, Decisive Move Will Come After Fed Meet

Copper.....

Copper pared some losses by the end of ring trades on LME but still lacked he confidence to end in green. The data from US soothed the nerves and helped in recovery. It is the Federal Reserve meet that is watched more keenly by the speculators. In economic reports, business conditions index rose to 7.84 in June from -1.43 in May, beating consensus forecasts of an increase to zero.

Meanwhile, Dollar remain whopping between losses and gains against the Euro. The greenback ended at 1.3361 per Euro, down 0.11 percent. The clarification from Ben Bernanke on the bond purchases might give some strength to the US Dollar. Rupee remained struggling against the Dollar and settled near all time lows at 57.85 against the Dollar.

One concern that has mitigated in recent times is the supply of Copper. Earlier, it was said that the Grasberg mine of Freeport will hit the supplies. However, restart of Sterlite industries Tuticorin Smelter will address that issue. The smelter was shut down from March 2013 from emission concerns.

Inventories data showed a rise of 11400 tonnes in LME Copper warehouses. Stocks have reached 629475 tonnes. Inventories have gained by more than 90 percent in 2013.

LME Copper three month prices closed at $ 7065 per tonne, down $ 20 per tonne. A decisive move will come in the metal only after Federal Reserve Committee meet. MCX Copper settled at Rs 409.45 per kg, up 0.37 percent. The metal tested a high of Rs 412.2 per kg and a low of Rs 407.1 per kg. Resistance for the contract is at Rs 414 per kg while support is at Rs 408 per kg.

Source by Commodity Insights

Economic Buzz: New Zealand Manufacturing Activity At 9-Year High

New Zealand's manufacturing index rose to 59.2 in May, the highest reading since June 2004, from 55.2 in April. Readings above 50 indicate expansion in activity. Manufacturing activity rose to its highest level in almost nine years in May, results of a survey by BNZ and BusinessNZ showed Friday. Looking at the May results, the value was the highest since the survey began in 2002.
New orders again led the way with its highest result since July 2004. This was followed by production, which was at a similar level to February this year. Employment increased during the month to record its strongest result since November 2007.
Source by Commodity Insights

Copper Tries Go Gain Momentum After Slack Thursday Trades

Copper.......

Copper is trying to gain momentum after a slack Thursday trades that has taken the prices to a six week low. The metal closed at $ 7093 per tonne, down $ 27 per tonne. The prices are trading with gains in Asian trades on Friday at $ 7121 per tonne.
US Dollar was trading higher against the Euro at 1.3346, up 25 pips. Indian Rupee was trading a bit higher after the all time lows brought some bottom fishing in the metal. The Rupee was trading at 57.72, down 0.37 percent.
Indian Copper prices ended at Rs 408.3 per kg, down 0.78 percent. Battery material lead was the most underperforming metal in the pack with prices paring 1.2 percent to close at Rs 120.95 per kg.
Shanghai Copper benchmark prices were still trying to mitigate with losses with prices at 51700 yuan per tonne, down190 yuan per tonne. This is the second straight day when Copper has opened in losses in China after resuming trades.
In economic report, the U.S. Commerce Department said retail sales rose 0.6 percent last month after rising just 0.1% in April. Economists expected an increase of 0.4 percent. Core sales excluding automobiles, gasoline and building materials, rose 0.3 percent in May after 0.2 percent increase in April.
The Labor Department said initial claims for jobless benefits fell by 12000 last week to 334000. The less volatile four-week moving average fell by 7250 to 345250.
Source by Commodity Insights

Economic Buzz: Bank of Korea Keeps Rate On Hold

The Bank of Korea left its benchmark interest rate at 2.50%, following a surprise rate cut in May. The central bank said it will aim monetary policy at improving economic growth potential, and named the U.S.'s possible withdrawal of its extraordinary monetary easing as a key downside risk.
The uncertainties related to the possibility of an earlier-than-expected tapering off of U.S. quantitative easing policy and the implementations of fiscal consolidation in major countries remain as downside risks to growth, the BOK said in a statement after its monthly policy review earlier in the day.
The bank said it expects the Korean economy to maintain its modest uptrend in line with the gradual recovery of the global economy. But it said the Japanese yen's heightened volatility, and possible domestic production setbacks due to an expected shortfall in power supply following the suspension last month of two nuclear reactors, are posing threat to growth.
The BOK said it will closely monitor changes in external risk factors. It will conduct monetary policy focused on keeping consumer price inflation within a target range over a medium-term horizon, and on ensuring growth potential isn't eroded by current slowing growth.
Source by Commodity Insights

Economic Buzz: World Bank Cuts 2013 Global Growth Estimate

The World Bank lowered its global economic-growth forecast Wednesday, tipping 2.2% expansion in 2013, down from a 2.4% projection issued in January and below last year's estimated 2.3% growth. In its semiannual Global Economic Prospects report, the multinational development agency also revised lower its expectations for growth in China, Brazil and India, while upping estimates for Japan and the U.S. For 2014, the World Bank sees global growth at 3%.Source by Commodity Insights

LME Inventories Data- 12 June 2013

Source by Commodity Insights

Gold Flat After Yesterday's Fall

Gold......

Gold futures are trading flat in the Asia electronic trades today after it fell nearly $10 at $ 1377 per ounce on disappointment that Bank of Japan offered no additional stimulus at its policy meeting and the strong Yen hurt the risk appetite in market.
Asia markets traded lower Wednesday, with investors slapping down Japanese stocks after the yen spiked overnight. Japan’s Nikkei Stock Average had thudded 1.8% lower by the end of the morning session, but it held on to the 13,000 level, trading at 13,072.61.
Other major indexes fell more modestly, with Australia’s S&P/ASX 200 down 0.9%, and South Korea’s Kospi losing 0.3%, while Singapore’s Straits Times Index and New Zealand’s NZSX 50 each lost 0.3%.
Markets in China — including those in Hong Kong and Shanghai — were closed for the Dragon Boat Festival.
The sharp fall in the US dollar was also of little help to the gold and other commodities. The dollar fell by almost 2 full yen overnight, with the greenback sitting at ¥96.48 midday in Tokyo after buying more than ¥98 at Tuesday’s Japan stock close.
The dollar traded above ¥100 early last week but hasn’t moved above that level since Japanese Prime Minister Shinzo Abe announced a slate of economic reforms — referred to as the “third arrow” of his three-pronged push to revive the nation’s fortunes, along with fiscal stimulus and monetary easing
Gold for August delivery is trading at $ 1377.2 up 2 cents an ounce on COMEX division of New York Mercantile Exchange. Yesterday, it ended Nymex floor trading down $9 at $1,377 an ounce. Earlier, the August contract traded as low as $1,364.50, its lowest intraday level since April 15.
MCX August gold futures may open today’s session near Rs 27900 levels with resistance near Rs 27950 levels and support near Rs 27750 levels.
Source by Commodity Insights

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

Economic Buzz: Australia Business Conditions Improve Slightly; Says NAB

Australia's business conditions improved marginally in May, while confidence remained unchanged, the latest survey by National Australia Bank, or NAB, showed Tuesday. The business conditions index rose to -4 in May from -6 in April. The business confidence index remained at -1. The indexes, however, suggested that both business conditions and confidence stayed at low levels. The survey report found that business conditions improved in wholesale, manufacturing and construction, but worsened in mining were capital spending was at record low. NAB expects near-term demand to remain weak with forward orders, capacity utilization and employment conditions staying well below their average levels. Any confidence gained from falling dollar and May rate cut by the Reserve Bank of Australia have been undermined by domestic weakness, the report said.
Meanwhile, the bank has downwardly revised its forecast for the Australian dollar as the currency continues to tumble in the face of a resurgent US dollar. In the lender's survey of business confidence and conditions for May, NAB said it forecast the Australian dollar to fall below 93 US cents by the end of 2013. The lender expected the currency to drop as low as 87 US cents by early 2014.
Source by Commodity Insights

Copper Drops More Than 2% Today

Copper...........

Copper has so far declined by 2.3 percent after the weakness shown in the export figures of China. LME Copper was seen trading at $ 7138 per tonne, down $ 177 per tonne. MCX Copper June expiry was trading at Rs 415 per kg, 0.44 percent.
China's industrial output rose by a less-than-forecast 9.2% in May from a year earlier, while consumer prices fell more-than-expected. The report from National Bureau of Statistics in China showed that Chinese exports rose at the slowest pace in almost a year in May, up 1%, well below expectations for gains of 7.3%. Imports unexpectedly fell last month, dropping 0.3%, compared to expectations for a 6% rise.
The data from Chinese imports didn't support the fate of Copper. The data has shown that China unwrought Copper and Copper product imports have appreciated by 21.3 percent to 358672 tonnes in May 2013 compared to 295799 tonnes in April this year. The decline in imports on a yearly basis spoiled the mood of the traders. Chinese imports declined by 14.5 percent on a yearly basis from 419741 tonnes in May 2012.
Among other metals, LME Aluminium inventories jumped by as much as 18750 tonnes in the single day on 9 June 2013. Imports of unwrought Aluminium in China were 72662 tonnes in May, up 13.3 percent from 64134 tonnes in April 2013. Imports declined by 20.2 percent from 91083 tonnes in May 2012.
The LME Aluminium prices have moved down by $ 40 per tonne to $ 1928 per tonne. MCX Aluminium didn't follow the footsteps of its counterpart and was up 1.2 percent mainly due to decline of Rupee to all time lows against the Dollar. Rupee was trading at 58.14 when last checked, up 1.9 percent.
Steel makers have continued to face depressing times in terms of demand. The slowdown in demand is troubling major Chinese steel makers. China steelmaker Baosteel has again decided to decline the prices of its products for July booking.
Baosteel will cut July prices of hot-rolled coil mainly for manufacturing by 200 yuan ($32.61) a tonne and for cold-rolled coil, principally for autos and domestic appliances, by 200 yuan a tonne.
Source by Commodity Insights