MCX Copper Edges Up Slightly, Rupee Eases (12:31, 07 Oct 2013) MCX Copper futures edged up slightly in the early moves today, though the global prices are not witnessing much of a movement amid a marginally bearish tone in the Asian stocks as the US budget strangulations kept the sentiments strained. The US dollar recovered modestly from its eight month low against the Euro and some buying picked up in COMEX Copper following it. The prices are lingering at $3.3040, up 0.09% on the day. The overall movement has been very thin after the counter recovered from a one-week low mark last week. MCX Copper is quoting at Rs 456.35, up Rs 2.15 per kg or 0.47% on the day. The Indian Rupee has dropped near 61.80 mark against the dollar, down nearly 0.80% on the day. Copper futures lingered in a narrow range after bouncing from its one week low as the impasse over the US budget continued to weigh on sentiment. The weakness in the US dollar, which neared its lowest levels in eight months against the Euro, supported the red metal though an extended shutdown in the US could cripple the commodity hard in coming days. The market-moving US non-farm payrolls data, which was initially supposed to get released on Friday, has been extended due to the government shutdown and could act as a major cue for the global markets in near term. US dollar has turned up from a eight month low of 1.3645 against the Euro as the safe haven buying finally emerges in the currency. Prospects for a swift resolution of the budget impasse in the US remain dim. Democrats and Republicans showed no hint of readiness to approve a budget for 2014 fiscal year, which began on last Tuesday. Chinese demand is likely to remain the key for copper prices, an extended US shutdown notwithstanding. China is expected to import more refined copper next year as Beijing steps up building of power networks, rail lines and low-cost homes, while domestic production is likely to be squeezed by tight scrap supply. Refined copper consumption might rise 5 per cent to 6 per cent next year, three large end-users and producers estimated. This would take consumption to about 8.6 million tonnes; based on 8.1 million tonnes estimated for this year by state-backed research firm Beijing Antaike Information and Development, according to media reports. Powered by Commodity Insights
Posted on: Mon, 07 Oct 2013 08:40:16 +0000
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