Indian Traders Should Get Themselves Prepared For Carnage In Copper (09:53, 20 Jun 2013) Be prepared to see some havoc and bloodbath in Copper today. The sentimental tide has surely turned against Copper and other metals after Chinese Purchase Manufacturing Index (PMI) data. The metal has already lost 1.6 percent of its value in London Metal Exchange. The metal was exchanging hands at $ 6886 per tonne. MCX Copper settled at Rs 408.3 per kg, down 0.44 percent but is likely to go much beyond these levels. Minor support from Rupee is not denied but how much it can hold Copper at current levels is a question. Supports for Copper are at Rs 405 and 402 per kg initially. China has reported its worst performance in terms of factory activity in nine months. The slowdown in demand is expected to cause more pain in the second quarter this year than earlier expected. The flash HSBC PMI has fallen to 48.3 in June compared to 49.2 in the month of May 2013. The growth target for GDP was set at 7.5 percent in the year 2013 but that looks likely to be missed. Further chaos is expected to aggravate on the Federal Reserve Ben Bernanke comments that the bond purchases will have to be reduced considering the slowdown in China. WBMS reported that world copper markets were in surplus of 22300 tonnes in the month of April 2013, as compared to a surplus of 127200 tonnes in March 2013. Meanwhile, the data shows that Copper markets were in surplus of 218700 tonnes in first four months of this year compared to 262800 tonnes deficit in the first four months of last year. Copper was in surplus of 52300 tonnes in whole of 2012. The closing stocks at the end of January-April 2013 were 1.32 million tonnes, up 45 percent from the year ending 2012 when stocks were 0.90 million tonnes. Among other metals, Nickel three month prices were down by $ 340 per tonne at settlement to $ 14100 tonne. It has further slipped to $ 13961 per tonne. MCX Nickel was up by Rs 834.3 per kg, up 0.25 percent. Powered by Commodity Insights
Posted on: Thu, 20 Jun 2013 04:57:26 +0000
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