Copper prices fell for the second day on today at the domestic markets on reports that the global central banks will refrain from bolstering monetary stimulus that is necessary to boost global economic growth which in turn reduced the demand prospects for the metal. The BOJ maintained status quo on its monetary policy while concerns that the US Fed may start scaling back stimulus as US economic outlook improves. At the MCX, copper futures for June 2013 contract were trading at Rs. 409.80 per 1 kg, down by 0.26 per cent, after opening at Rs. 410.30 against the previous closing price of Rs. 410.85. It touched the intra-day low of Rs. 408.30 till the trading. Sentiment weakened further due to the surge in the copper stockpiles at the London Metal Exchange (LME) on account of the weak demand for the commodity. LME copper stocks rose by 250 metric tonnes to 609250 metric tonnes Moreover, stronger greenback makes the copper expensive for those holding other currencies, thus reducing demand.
The U.S. dollar index, a measure of the value of the United States dollar relative to a basket of foreign currencies, was trading 0.18 per cent higher at 81.259 on the Inter-Continental Exchange (ICE). However, losses in the base metal were curbed after Britain’s industrial production rose for the third consecutive month in April 2013, adding to signs that the economy is on a recovery path after emerging from a recession last quarter which raised the demand outlook for the commodity. UK industrial production rose by 0.1 per cent in April 2013 from March 2013, when it increased 0.7 per cent, the Office for National Statistics said in a report. At COMEX, copper futures for July 2013 contract traded at US$3.1845 per pound, down by 0.05 per cent. It opened at US$3.1925 against the previous closing price of US$3.1950.
The U.S. dollar index, a measure of the value of the United States dollar relative to a basket of foreign currencies, was trading 0.18 per cent higher at 81.259 on the Inter-Continental Exchange (ICE). However, losses in the base metal were curbed after Britain’s industrial production rose for the third consecutive month in April 2013, adding to signs that the economy is on a recovery path after emerging from a recession last quarter which raised the demand outlook for the commodity. UK industrial production rose by 0.1 per cent in April 2013 from March 2013, when it increased 0.7 per cent, the Office for National Statistics said in a report. At COMEX, copper futures for July 2013 contract traded at US$3.1845 per pound, down by 0.05 per cent. It opened at US$3.1925 against the previous closing price of US$3.1950.
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