This has been quite surprising and one can very well judge the pace at which Copper contract showed a correction. The Indian Copper prices declined by Rs 8 per kg even after Rupee crossed 55 mark against the Dollar and was down by 0.2 percent on Friday.
MCX Copper closed at Rs 408 per kg, further decline can take Copper towards Rs 400 per kg. The Chinese data was also on the downside forcing LME Copper to close below $ 7400 per tonne at $ 7319 per tonne, down $ 185 per tonne.
However, Copper prices will likely hold above $ 7200 a metric ton in the near term, as a stoppage at Freeport Indonesia's massive Grasberg mine keeps investors and consumers cautious about possible supply risks.
Chinese data has showed that seven month low manufacturing PMI was creating problem for the markets. The preliminary reading of HSBC Flash manufacturing PMI for May dropped to 49.6 against the forecast of 50.4.
In US, the U.S. Labor Department said initial claims for jobless benefits fell by 23,000 to 340,000 last week. Economists expected a reading of 345,000 new claims. The less volatile four-week moving average for May fell to 339,500 from 362,000.
The Commerce Department said new home sales rose 2.3% last month to a seasonally adjusted annual rate of 454,000 units. The median sales price rose 8.3%.
Source by Commodity Insights
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