Copper Rebounds From Four Month Lows

Copper.....

Copper prices rebounced from four month lows on falling US Dollar and traders holding shorting of metal before the two day meet of Federal Reserve. LME Copper closed at $ 7608 per tonne, up $ 40 per tonne. The metal is also up on Thursday as the China PMI data has registered strength. This has improved the sentiments as traders think that the demand situation will not be as bad as it was considered.

HSBC China Purchase Managers Index moved to 51.7 in March compared to 50.4 in the month of February. The PMI was below two year high of 52.3 but the rise on a monthly basis has been consoling the prices. LME Copper was seen trading at $ 7696 per tonne on Thursday. This has increased hopes of good opening in domestic Copper that closed at Rs 417.1 per kg, up Rs 4.3 last night. The prices can open near Rs 421 per kg.
Meanwhile, Codelco workers are demanding more clarity on administration functioning, outsourcing of labour and privatization of employee's health care. The mining strike is not expected to bring any significant disturbance in the Copper markets. Copper market is set to turn in surplus in 2013 and this is relatively blowing out any fears of price rise due to labour unrest.
Federal Reserve said last night that they will keep the bond buying programme intact till more clarity on the economic recovery was seen. US Dollar traded at 1.294 against the Euro, down 0.02% on Thursday.
Source by Commodity Insights