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      Copper stocks once again in limelight

      MoM Team / Mumbai, Apr 11, 2013 04:59 PM IST

        Copper stocks once again in limelight

        Copper stocks were once again in limelight as prices declined after three days of relief rally.

        The talks that US will stop the quantitative easing measures earlier tumbled Copper and peers.

        Amid all this, Copper inventories continued to swell and have ballooned to 590175 tonnes, up 2250 tonnes.

        The fall in QE programme can bring down the prices of metals that has been riding on account of investment demand.

        The reports that Chile 24 hour strike ended eased the metal further down on Thursday.

        Codelco is the biggest Copper producer in the world. LME Copper was trading at $ 7545 per tonne, down $ 30 per tonne.

        It should be made clear that manufacturing growth in world major consumers has been slowing down and recovery will take time.

        Therefore the rise in metals has been majorly due to speculative and investment led demand. Metals like Aluminium, Copper and Zinc have been supported by the financial deals.

        Ample of supplies in spot markets is clubbed by falling demand which is a worrying factor.

        Till December 2012, news was that the fall in spot supplies was pressurizing the prices.

        Copper has seen the rise of 85 percent in inventories this year. Similar is the case of Aluminium where inventories have crossed 5.2 million till early April.

        Meanwhile, China reported its trade data for the month of March 2013 yesterday.

        The data from General Administration of Customs showed that the imports of unwrought Aluminium and Aluminium products was 69845 tonnes in March 2013, down 42 percent from 120494 tonnes from March 2012.

        Indian Copper futures for April expiry declined by 0.5 percent, and were seen at Rs 409.8 per kg.

        The prices tested low of Rs 409 per kg. The prices are supported at Rs 408 per kg and have resistance at Rs 413.5 per kg.

        Markets will be eyeing for the initial jobless claims data from the US, due to be released on Thursday.

        Increase in jobless claims will make market players believe that the stimulus measures will continue.

        Click here for latest Copper, Aluminium and Zinc price.

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      Source: Capital Market



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