A critical resistance of Rs 410 was broken by Indian copper in today's trades as INR surpassed 55 mark against the Dollar in a flash. General rise in US Dollar against the majors ahead of Federal Reserve Chairman Speech was watched carefully by market players. Indian Rupee was trading at 55.3, down 0.35 percent before the closing bell. Meanwhile, Dollar was trading at 1.2865 against the Euro, down 0.2 percent.
LME prices of copper were at $ 7398 per tonne, up 1.3 percent from last night. Markets are expecting that Federal Reserve will give some indications on the bond buying programme in the minutes. In another important event, China is due to release its Purchase Manager's Index this week. These are very decisive triggers for Copper and peers.
Meanwhile, China came out with its import numbers for copper. The news of decline in refined copper imports to June 2011 levels has been ignored by the prices. China general administration of customs reported a fall to 183023 tonnes in April compared to 218823 tonnes in March. Exports of refined copper have also taken a hit as they declined to eight month lows of 29072 tonnes, down 52 percent from a month earlier.
Indian copper futures for June delivery are taking the advantage of weak Rupee and moved beyond levels of Rs 410. Further increase will take prices towards Rs 413 per kg. Support for the contract is at Rs 404 per kg.
Among other metals, LME Aluminium made some smart moves today and was up by 1 percent after the opening of European markets. The LME three month Aluminium prices were trading at $ 1865 per tonne, up from $ 1845 per tonne. On MCX, Aluminium was trading at Rs 101.95 per kg, up 0.5 percent
For the time being, Lead has corrected by more than 13 percent so far this year. However it has been much less in case of Copper that has been down by more than 7 percent so far. The propensity of selling makes it a better contender for buying in coming days. Prices have moved up from cap of Rs 111 per kg making it a candidate of a jump of 7 to 10 percent. The prices were last seen at Rs 112.9 per kg, up 0.71 percent.
Source by Commodity Insights
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