Copper Continues To Press Lower, MCX Futures Down 3% Last Week

Copper......

MCX Copper

futures are expected to open a tick lower today as the metal continues to face selling pressure in world markets. Asian equities are down half a percent and worries posed by Chinese demand slowdown are hurting copper. The benchmark COMEX Copper futures are down 0.23% at $3.098 per pound. Rio Tinto PLC said today that it is selling its majority stake in a copper-and-gold mine in Australia for US$820 million to a Chinese resources company, in its latest move to bolster its balance sheet amid a global slowdown in commodities demand. Copper slipped from its six-week highs as the metal felt the pressure of weak Chinese demand. China's manufacturing activity slowed to an 11-month low in July, the first evidence of the Asian economic giant losing further momentum in third quarter. In a survey, British banking giant HSBC said its preliminary purchasing managers' index (PMI) hit 47.7 this month, down from a final 48.2 in June and the lowest since August. China's government has ordered companies to close factories in 19 industries where overproduction has led to price-cutting wars, affirming its determination to push ahead with a painful economic restructuring despite slowing growth. The growth in the second largest economy in world has slipped to decade low of around 7.5% and has kept a lid on copper prices over last one and half years. Rising inventories and a surplus in global market have also had a depressing effect. ICSG has reported earlier this week that the world copper markets were in surplus of 50000 tonnes in April 2013. After making seasonal adjustments, the Copper markets were in production surplus of 106000 tonnes. The world copper markets were in surplus of 266000 tonnes in the first four months of 2013. MCX Copper futures slipped nearly 3% last week with the losses exacerbated by the gains in Indian Rupee. The counter ended just above Rs 408 per kg levels and continue extend the slide further today. Overall range is likely to be Rs 405-409.

Source by Commodity Insights