Copper managed some gains even as inventories on LME increased by 2450 tonnes on Monday. The inventories in LME have now increased by 89 percent in 2013 to 606700 tonnes.
LME three month prices were trading at $ 7418 per tonne, up $ 42 per tonne after the Chinese data showed rise in industrial production. However, the prices have not moved much due to the fact that the rise in industrial production was not as per the expectations.
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. China GDP increased by 7.7 percent in the first three month of the year to 7.9 percent in the previous quarter.
Fixed asset investment of China grew by 20.6 percent in the first four months of the year. Economists had expected a rise of 21 percent in fixed asset investment.
Indian Copper prices have declined by 7.6 percent in 2013 to Rs 410 per kg from Rs 443.9 per kg at the beginning of this year. Further elevation in Indian Copper is possible considering the decline of Indian Rupee against the Dollar. Rupee tested a ten month low level of 55 against the Dollar on 13 May 2013. However resistance of Rs 415 and 420 per kg will be difficult to be broken.
In another news, ICSG has predicted that demand will continue to lag behind production and the total surplus is estimated to increase to 415000 tonnes in 2013. World Mine production of copper is expected to increase by 18.54 million tonnes from 17.56 million tonnes in 2012, up 5.2 percent.
Refined copper production is expected to increase by 4.3 percent to 20.98 million tonnes in 2013 up from 20.16 million tonnes in 2012. Meanwhile, World refined usage of Copper is expected to reach 0.3 percent to 20.56 million tonnes in 2013, from 20.51 million tonnes in 2012.
Source by Commodity Insights
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