The suppression of prices in last several days resulted in the bounce back of Copper. The fundamentals were overlooked last night as LME forwards increased by 1.8% to $ 7839 per tonne. Indian Copper responded well on the buying calls in global counterpart and ended higher. The prices tested a high of Rs 430 per kg.
China reported a rise in Copper production during February, a news that was ignored by the participants. Sell off from four month low levels seemed tough considering the oversold markets. This resulted in bargain buying.
Chinas copper output in February rose 10.8% from a year earlier to 483000 metric tons, the National Bureau of Statistics said Tuesday. Production in the first two months rose 11.9% on year to 975000 tons.
In another news, Antofagasta reported record production of Copper in its year ending 2012 report. The company said that Copper volumes were up by 11% to 709600 tonnes in 2012 compared to a production of 640500 tonnes in 2011. Copper production rise was basically on account of higher production in Esperanza where production increased by 81% to 163200 tonnes. Group copper production in 2013 is expected to be approximately 700,000 tonnes.
In currency markets, Dollar closed higher against the Euro after European Central Bank Council member Jens Weidmann said that inflationary pressures across the Eurozone remain light. The greenback settled at 1.302 against the Euro, up 20 pips.
Australian Bureau of Statistics said that Australian home loans fell to a seasonally adjusted -1.5% in February, from -2.1% in the preceding month whose figure.
MCX Copper April expiry contract gained sharply higher and ended at Rs 428.3 per kg, up 0.63%. The prices are expected to find resistance at Rs 431-432 per kg. Supports for the contract are at Rs 427 and Rs 424 per kg.
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