Copper Roughed Further After China Reports Frail PMI

Copper....

LME Copper

three month prices and MCX Copper for April delivery was roughed up by bears after a grim set of Purchase Manager's Index (PMI) numbers from China. The negative tone in metals was further grilled by the losses reported by Caterpillar. Copper tested a 33 month low of $ 6832 per tonne on London Metal Exchange (LME) on Tuesday.

On MCX, Copper for April expiry contract was trading at Rs 370.95 per kg, a level not seen since October 2011. The prices tested a low at Rs 366.8 per kg and a high of Rs 374.1. The prices are expected to slip towards Rs 365 per kg today.

Machinery maker Caterpillar showed sharp decline in profits after being affected by weak mining and construction demand. The company reported a decline of 45 percent in the first quarter earnings demand.

Earth moving equipment maker posted a net income of $ 880 million in the first three months of 2013. The company has warned that the conditions in mining business have declined considerably. The state of affairs in mining globally has been affected by slowdown in demand.

Source  by Commodity Insights