Technical selling extended further as no respite in selling pressure aroused in Copper last night. Promulgation of bearishness among the commodities complex proved quite toxic for Copper and peers. Even as we write, London Copper three month prices are down by almost 3 percent and down to 33 months low at $ 6790 per tonne.
MCX Copper reached a level of Rs 379.7 per kg in the day and settled at Rs 381.4 per kg. The prices are expected to breach Rs 380 in the opening trades. These are 17 month low levels for Copper in India. Traders and speculators must be ready to sell further in today's trades looking at the carnage in international markets. Further drop down can take prices towards Rs 375 per kg.
Supply side worries coupled with reduced growth forecasts of World economic growth has tarnished the image of Copper to a large extent. Potential of oversupply is increasing day by day looking at the weak macro economic situation of China.
The largest consumer of metal China, is expected to reduce its reliance on imported metal on account of heavy inventories within the country which will take time to get consumed. This is because of the waning demand.
Warning signs by IMF was the major trigger in metals after the early jot from Chinese GDP data this month. International Monetary Fund (IMF) slashed its forecast for global growth to 3.3 percent in February from projection of 3.5 percent in January 2013.
Forecast for global growth in 2014 was lowered to 4 percent from 4.1 percent in earlier forecast. The forecast of China was lowered to 8 percent in February from 8.2 percent. Earlier this month, China National Bureau of Statistics showed that the GDP unexpectedly slowed down to 7.7 percent in first quarter of 2013, compared to 7.9 percent of GDP for final quarter of 2012.
According to preliminary statistics, the GDP totaled 11.89 trillion yuan or $ 1.9 trillion in the first three months. China's full-year annual growth in 2012 eased to 7.8 percent, its weakest since 1999.
Among other metals, Nickel cooled down by $ 395 per tonne on Wednesday and was seen further down by 1 percent or $ 155 per tonne at $ 15245 per tonne on Thursday. MCX Copper prices were down by 2.3 percent on Thursday, at Rs 833.6 per kg. The metal is expected to test Rs 823 per kg in today's trades.
Source by Commodity Insights
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