Wednesday, 13 November 2013

MCX Copper futures dragged down by downbeat demand prospects

Commodity Insights reported that,MCX Copper prices fell by 0.42 per cent on Tuesday at the domestic markets as investors and speculators were cautious of booking fresh positions in the metal amid doubts over the longevity of the US Federal Reserve’s record stimulus program. A bigger than expected gain in US payrolls in October has fueled fears that the Fed may begin QE tapering from next month. At the MCX, copper futures for November 2013 contract were trading at Rs. 457.05 per 1 kg, down by 0.42 per cent, after opening at Rs. 458.35 against the previous closing price of Rs. 459. It touched the intra-day low of Rs. 456.70 till the trading.Prices also fell as a slower than expected growth in new yuan loans in China last month signaled a slowdown in the world’s second biggest economy, dimming the demand outlook for the commodity. 

China’s banks and financial institutions created 506.1 billion yuan in new local-currency loans last month, compared to analysts’ estimates of 580 billion yuan. However, losses were curbed due to the decline in the copper stockpiles at the London Metal Exchange (LME) on account of the strong demand for the commodity. LME copper stocks fell by 2775 metric tonnes to 462875 metric tonnes as on November 12, 2013.

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