Sharp selloff in metals last night that saw Copper dipping to a seven month low has seen some halt on Wednesday. The metal used in electrical appliances and construction is now showing rangebound moves on a rather dull note than usual.
The contraction in Copper in last few
days has been so sharp that the selling seems to have lost some pace. It
seems that in coming days there can be retracement in the prices before
next selling wave triggers. LME Copper declined by $ 145 per tonne to
close at $ 7468 per tonne. Copper was trading at $ 7487 per tonne on
Wednesday.Manufacturing data in US was lackluster this week that has grimed the sentiments. US PMI in March was at 51.3 percent, a decrease of 2.9 percentage points from February's reading of 54.2 percent, indicating contraction in manufacturing. The undertone was already bearish on account of decade highs inventories of Copper in London warehouses and even Shanghai.
In other news, Rio Tinto has taken a major step forward in its expansion of its Pilbara operations, with the installation of the new shiploader with a nominal 55 million tonne annual capacity on the new wharf at Cape Lambert.
Last night, LME Aluminium prices slipped below $ 1900 per tonne levels and tested a low not seen since September 2012. Nickel slipped sharply by $ 250 per tonne to $ 16445 per tonne. Nickel is turning into a surplus in 2013 with inventories swelling higher and lower stainless steel demand. Chinese measures of tightening property markets can also bring a check on raw material offtake of steel.
MCX Copper closed at Rs 408.5 per kg, eradicating losses of intraday. Prices tested a low of Rs 406.1 before ending sideways on Tuesday. The metal is supported at Rs 405.5 and 404 per kg. Restrictions at Rs 410 are intact for Copper on higher side.
MCX Nickel closed the day significantly lower at Rs 895.9 per kg, down 2%. The prices tested a high of Rs 908.7 per kg and a low of Rs 889.2 per kg.
Source by Commodity Insights
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