After correcting to a four month lows, Copper prices were witnessing some stabilization on Wednesday. LME three months Copper forward ended at $ 7568 per tonne, down $ 21 per tonne on Tuesday but was trading at $ 7573 per tonne. Physical demand in spot markets is very quiet and this will result in consolidation between $ 7700 and $ 7450 per tonne levels. Inventories have kept on rising and were at 547025 tonnes on Tuesday.
Meanwhile,
workers of Mining giant Codelco has called for a 24 hour strike in
coming 30 days after they declined management proposals. The workers are
demanding more clarity on administration functioning, outsourcing of
labour and privatization of employee's health care. The mining strike is
not expected to bring any significant disturbance in the Copper
markets. Copper market is set to turn in surplus in 2013 and this is
relatively blowing out any fears of price rise due to labour unrest. Lack of demand is also noticed in Nickel due to slowdown in stainless steel markets. The demand for stainless steel is slow at the moment and major companies are slashing down the prices of stainless steel products. Nickel production zoomed in China according to the recent data released. The data released by National Association of Customs showed that the production of Nickel in the country increased by 153.5% to 51707 tonnes in February 2013. The rise in first two months of the year was 166% to 105712 tonnes.
Dollar tested a four month high of 1.2841 against the Euro after closing at 1.2867 last night. The difficulties in Cyprus and the concerns on European Union solidarity is dominating position of Dollar. Cyprus is on the verge of becoming bankrupt after the policymakers rejected the out of favor plan to tax bank deposits in the country.
On MCX, Copper settled at Rs 412.8 per kg, up just 0.04%. The prices tested a high of Rs 416.7 per kg and a low of Rs 411.8 per kg. Further decline in Copper is likely with price targets of Rs 408 per kg. The volumes of last night reached contract month highs at 172925 kgs as against an average of Rs 98000 kgs in last few days.
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