Copper Is Rangebound On LME, MCX Likely To Open On A Dull Tone

Copper......

Copper is trading in a rangebound fashion on Tuesday in early Asian trades after the Chinese industrial production data came below expectations last night. The dullness in Copper and other metals is also due to the fact that the rise in inventories levels is making things difficult for the prices to move ahead. LME Copper three month prices are trading at $ 7335 per tonne, against $ 7378 per tonne on Monday. The inventories levels of Copper are at decade high of 606700 tonnes. Chinese industrial production increased by 9.3 percent but below market expectations of 9.5 percent increase. The industrial production numbers moved higher compared to March figures of 8.9 percent. Various data agencies have been warning of decline in Chinese economy in coming days. Last week, Copper and Copper product imports in China declined to multi month low levels as per the data from China General Administration of Customs. The report showed that the Copper imports were 295799 tonnes in April 2013, down 7.4 percent from last month levels of 319603 tonnes. The decline was more denting on a yearly basis by 21 percent from 375258 tonnes in April 2012. In other economic news, US Commerce Department said that the retail sales increased 0.1 percent in April following in March. The increase was the result of rise in auto sales numbers by 1 percent. In currencies, Dollar was lower against the Euro, trading at 1.3013. The last session closed with Dollar at 1.2981 per Euro. Meanwhile, Indian Rupee that slipped to 55 against the Dollar is recovering and is now at 54.72. This is ten month low level for Rupee. The rise in Rupee can bring further slide to Copper that was down in MCX futures even after sharp fall in Indian currency last night. Indian Copper prices have declined by 8 percent in 2013 to Rs 408.6 per kg from Rs 443.9 per kg at the beginning of this year. Resistance of Copper is at Rs 412 and 415 per kg. Supports for the contract is at Rs 403 and 401 per kg. Source by Commodity Insights