Copper Gains On Account Of Weak Dollar

Copper....

Copper was moving forward on Friday on the back of weak Dollar. The markets were trying to recover from the dullness though the upside seemed to be kept by the rising inventories on LME and Shanghai. LME three month Copper forwards was trading at $ 7822 per tonne, up $ 32 per tonne. Shanghai warehouse data for the week showed a rise of 6456 tonnes in Copper to 231875 tonnes. LME Copper inventories have reached 3575 tonnes to 525825 tonnes. US Dollar was facing profit booking by traders ahead of weekend. The Dollar was seen trading at 1.3063 against Euro. Rupee was in a minor recovery mode against the Dollar and was trading at 54.04, up 0.52%. Copper surplus this year is all over the place and the rise in inventories of metal is promoting this fact. Inventories of Copper on LME have been rising significantly and are up by almost 65% in 2013. Meanwhile, Aluminium inventories in Shanghai have increased by 14% since the beginning of 2013. Faltering demand of metals and rising supplies has been a major reason of appreciation in inventories. The most active Aluminium contract has increased by 60327 tonnes to 502622 tonnes since January 2013. In Nickel, China major producer of steel and steel products Baosteel has reduced the prices of Stainless Austenitic Coils by $ 50 per tonne. The move has been made to sustain the export orders and to adjust the prices according to the decline in the value of Nickel. The decline in demand of Europe that has already battered Nickel considerably. However, Nickel was seen trading at $ 17309 per tonne, up $ 234 per tonne. MCX Nickel was trading at Rs 935.3 per kg, up 0.30%. MCX Copper was trading at Rs 426.4 per kg, unchanged from last night. The prices were not picking up strength at all, may be evening session will be a bit different. Support for the contract is at Rs 425 per kg. Resistance for the contract is at Rs 431 per kg. Media sources have confirmed that the Oyu Tolgoi Copper and Gold project in Mongolia will begin production in June this year. Earlier there were reports that the tussle between Rio Tinto and Mongolian government over the project will impact its commercial production due to begin in June. Taxes and rising costs were the area of concern for both the parties ( Rio and Mongolian government). No decision has been taken yet on how this matter will resolve but it has been decided that they will meet next week to discuss it further. Source  by Commodity Insights