Wednesday, April 10, 2013

Copper Up In Asian Trades, Ignores Decline In Chinese Imports

Copper......
China Copper imports declined in the month of March but the traders have continued to ignore the fact in early Asian trades. LME Copper prices are up by $ 76 per tonne at $ 7592 per tonne on Wednesday. Even as Asian Development Bank raised the forecast of China GDP to 8.2 percent from 8.1 percent earlier, China has shown rise in trade deficit. The General Administration of Customs reported that the China exports increased by 10 percent in March on a yearly basis while imports increased by 14.1 percent.
The whole metals pack can move down as the day progresses considering decline in Chinese import capacities of metals. The drawdown in imports is due to slackness in demand and heavy stockpiles in the warehouses. China Copper and Copper products imports declined by 31 percent to 319603 tonnes in March. Meanwhile, cumulative imports of Copper were 967632 tonnes in between January-March 2013, down 29 percent.
Markets are expected to turn focus on Federal Reserve minutes going forward. This will give the signal on which way the quantitative easing programmer will shift. Loose monetary policy will aid the metals while any suggestion of withdrawing treasury buying early will derail the metals.
Dollar was static at 1.3086 against the Euro. In last few days, greenback has been in pressure against the European counterpart. Dollar has broken 1.5% of its value in one week. Indian Rupee was seen at 54.47, up 0.24 percent against the Dollar. The rise in Rupee will create friction in the opening elevation of Copper and other metals.
Indian Copper futures on MCX platform, ended at Rs 414.5 per kg, up 1.6 percent on 9 April 2013. The prices are resisted at Rs 415.5 and 416.5 per kg. Supports for the contract are at Rs 411.5 per kg. Among other metals, galvanizing material Zinc closed at Rs 103.7 per kg, up 1 percent.
Source by Commodity Insight

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