After a sharp correction in last few days in Copper the prices showed moderate spike in the LME and MCX exchanges. The most active Copper contract on MCX was trying to pick up steam and tested a high of Rs 416.9 per kg so far on Wednesday. On LME, the metal recovered from lows and was trading at $ 7603 per tonne, up $ 35 per tonne. Demand for major metals across globe is still in pretty bad shape. World biggest consumer of metals China is still absent from heavy buying in metals.
The
rise in Copper today was on account of profit booking in Dollar against
the Euro. Markets are also awaiting Federal Reserve policy meeting
today. US Dollar was trading at 1.292 against the Euro, down 0.41%. The
indications of Federal Reserve on its bond buying programme are critical
for the metals. In Cyprus, an emergency meeting is being called by the
President to save the country from bankruptcy. Steel major, Baosteel has slashed the prices of stainless steel products in April. The company has decided to cut list prices of 304 grade Cold rolled stainless steel products by RMB 800 per tonne. The prices of 304 grade hot rolled steel have been slashed by RMB 400 per tonne. The list price of 304 grade cold rolled stainless steel products is at RMB 18100 per tonne. The list price for 430 grade cold rolled steel products is at RMB 16800 per tonne.
World Steel Organization has said that China Crude steel output was 61.8 million tonnes, up 9.8% in February. Global Crude Steel output was 123 million tonnes, up 1.2% in February 2013. Meanwhile, International Aluminium Institute has said that the world Aluminium output in February was 3.63 million tonnes, down 233000 tonnes.
Indian Copper has dropped to four month low levels of Rs 411.8 per kg on 19 March 2013. The prices have recovered and were trading at Rs 416.2 per kg, up 0.84%. Yesterday, Important levels of Rs 412.6 per kg were breached in the process though Copper managed to recover and settled at Rs 412.8 per kg. The breach of Rs 412 has opened new gates for Copper declines. Technical bounce towards levels of Rs 418 and further to Rs 422 per kg will bring fresh pressure in the markets.
Source by Commodity Insights
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