Traders still remained worried on the measures adopted by China on its property markets. However the metal recovered from its three month lows on London Metals Exchange. LME three month forwards ended at $ 7741 per tonne, up $ 77 per tonne. China that accounts for 40 percent of the refined Copper opted for measures to control its overheated economy. The country has initiated 20 percent taxes on capital gains on home sales profits and has even asked to increase the down payment requirement to keep buyers on the back foot. LME three months Copper forwards was trading at $ 7779 per tonne.
Euro managed to recover against the US Dollar on Monday. The pair ended at 1.3025 on Monday. Although recovering marginally Euro is still at two and half month lows against the greenback. Indian Rupee closed the last session at 54.85 against the US Dollar. The same is now up by 0.14% to 54.77 on Tuesday.
MCX Copper April expiry contract bounced from intraday lows of Rs 427 per kg and ended at Rs 430 per kg, down 0.2%. MCX Copper contract tested a high of Rs 430.85 per kg. The prices are well resisted at Rs 433-435 per kg levels. Support for the contract is at Rs 427 per kg.
Among other metals, Aluminium was trading at $ 1982 per tonne, up $ 10 from last day. Major world producers are reducing their production in 2013 in order to sustain costs that are getting challenged by lower Aluminium prices and demand. MCX Aluminium closed the last session at Rs 107.8 per kg. The resistance for the contract is at Rs 108.1 and 108.5 per kg. Supports for the contract are at Rs 106.7 per kg.
UC Rusal has planned to slash its output by around 7% in 2013 citing excess global supplies and lackluster demand as the major. Rising output in China and Persian Gulf is another factor that is worrisome for worlds biggest producer of Aluminium. The company has said that the Rusal will maintain lower production through atleast 2015 unless prices rise sharply.
Rusal will cut production by around 300000 metric tons at its less efficient smelters by the end of the year, and maintain output at around 3.8 million tons a year, down from 4.2 million tons in 2012, through at least 2015. The company currently accounts for 9% of the total production in the world.
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