Copper Now At 20 Month Lows On LME

Copper........

Copper

got crushed to a 20 month low against the LME on Friday due to lack of supports from Dollar, China and US Fed in a span of two days. US Federal Reserve has made its intention clear that they will cut back on the support to the economy through stimulus measures later this year. The whole set of data were on the negative side. In China, the PMI numbers that were eagerly awaited dejected the traders. Chinese PMI numbers slipped to nine month lows.

In currency markets, the talks of Indian Rupee touching 60 mark were all over the news. Rupee managed to recover from the slaughter in the hands of Dollar and ended at 59.58. The Rupee was 59.66 when last seen. Euro/Dollar pair ended at 1.3223 from 1.3295 on Wednesday.

Aluminium declined to three and half years low to settle at $ 1794 per tonne, down $ 42 per tonne. MCX Aluminium closed at Rs 105.7 per kg, marginally up. This was due to the weakness in Indian Rupee that has made imports more costly.

China refined Aluminium production in January-April 2013 was 7 million tonnes, up 18 percent from 6.22 million tonnes in January-April 2012 as per WBMS estimates. China produced 44 percent of total Aluminium produced in the world. China production of refined Aluminium in April was 1.79 million tonnes, from 1.70 million tonnes in March 2013.

Refined production of Aluminium in US was 665300 tonnes in January-April 2013, down by 4.8 percent from similar period last year. Production in April was down to 5300 tonnes compared to 166800 tonnes in March 2013.

LME Copper closed at $ 6835 per tonne, down $ 168 per tonne. MCX Copper June contract closed at Rs 404.75 per kg, down Rs 4. WBMS estimated that China refined copper production was 2.10 million tonnes in January-April 2013 compared to 1.80 million tonnes in similar period last year.

Meanwhile, World refined copper consumption was 6.73 million tonnes in first four months of the year compared to 6.89 million tonnes in January-April 2012. Chinese refined copper consumption was 2.79 million tonnes in January-April 2013, compared to 2.96 million tonnes in January-April 2012.

Source by Commodity Insights