Copper Faces Heat From Traders Selling

Copper.....

Selling pressure in Copper

remained intact even after the opening of European trades. The extension of Asian losses was seen as prices lost hope of any recovery in near term. Chinese growth concerns remained pinning the minds of day traders as the prices on LME tested a one week low.

The LME three month Copper prices were seen at $ 7276 per tonne, down $ 102 per tonne. Inventories continued to pile up for the second straight day of the week. The total inventories have now reached 618700 tonnes, after it moved up by 12000 tonnes.

Meanwhile, Freeport mine reported a tunnel collapse which was not impacting the prices. The collapse occurred at an underground training facility near the company's massive Grasberg copper and gold mine in Papua.

In another news, Rusal reported that the primary aluminium production in the first quarter of 2013 decreased by 4% or 42 thousand tonnes to 1007 thousand tonnes compared to the first quarter of 2012 or by 3% or 31 thousand tonnes compared to the fourth quarter of 2012 reflecting the launch of capacity curtailments program and was mostly attributable to the decreased production at certain less efficient smelters located in European part of Russia and Urals.

London warehouses today saw a jump of 1.4 percent in Aluminium inventories or 76125 tonnes to reach levels of 5230300 tonnes. This was also the six week high level of inventories on LME. LME three month forward prices were trading at $ 1855 per tonne, unchanged from last night. Meanwhile, MCX Aluminium was trading at Rs 100.85 per kg, down 1.2 percent.

For the second straight session in a row MCX Copper slipped sharply lower triggered by pressure from the world economy and simultaneous recovery of Rupee against the US Dollar.

MCX Copper benchmark June expiry contract was trading at Rs 399.9 per kg, down 2.2 percent from last day. This is a three day low for the metal which now seems to be moving below Rs 395 per kg in remaining session.

Source by Commodity Insights