Expectations Of Higher Employment In US Salvages Copper

Expectations of higher employment rate in US are salvaging Copper to a great extent. Markets seemed to forget the problems with Chinese demand and manufacturing numbers but were counting on better figures of jobs from the US. Since the decline of jobless claims last night, Copper is convalescing pretty fast. LME Copper three month delivery was trading at $ 7100 per tonne, up 3 percent from Thursday. Indian Copper futures for May expiry were trading at Rs 387.5 per kg, up 4.2 percent or Rs 15 per kg. Supports for the contract are at Rs 386 and 384 per kg while Resistance for the contract is at Rs 393 per kg. In currency markets, US Dollar was moving down against the Euro, helping the international traded commodities in the process. Metals become more attractive if Dollar declines. The US Dollar was trading at 1.3125 against the Euro, against 1.3061 last night. Indian Rupee was weak by 0.3 percent to 53.97 after the announcement of RBI policy. RBI came out with a hawkish monetary policy slashing the repo rates by 25 basis points to 7.25 percent. RBI governor, Mr D Subbarao, said that imported inflation is likely to be lower provided the exchange rate remains broadly stable. Indicators of corporate performance, industrial outlook and PMIs are pointing to a declining pricing power. On the other hand, food inflation is likely to be a source of upside pressure because of persisting supply imbalances. In China, General Administration of Customs estimated that the refined copper apparent consumption of Copper was 718700 metric tonnes during March 2013, down 13.33 percent year on year. This was largely due to falling imports and 60000 metric tonnes in exports made during the month. Copper smelters involvement in the copper concentrate processing trade using imported materials has helped digest some of the refined copper output. Other metals like stainless steel material Nickel was up by 1.3 percent to $ 15037 per tonne on LME platform. MCX Nickel was marching higher and had more than 3 percent gains under its belt when last checked at Rs 819.8 per kg. Source  by Commodity Insights