Saturday, June 28, 2008

Copper Prices Fresh Breakouts The Trading Session - June 28,2008

Copper prices gave fresh breakouts in the trading session last night. This has made Copper a new contender for the rally ahead of Aluminium which is getting dull on the rise of inventories.

The price of copper rose to a one-month high above $8535 per tonne in LME futures trade on Friday as a weaker dollar, falling warehouse stocks, and possible labor issues in Peru helped provide the underpinnings for the stronger price action. The dollar extended declines against the euro on Friday after U.S. stock markets accelerated their losses.

Copper inventories in Shanghai fell 3 percent to 32,401 tonnes in the week ended Thursday, compared with 33,417 tonnes the previous week. London Metal Exchange (LME) copper warehouse stocks fell by 150 tonnes to 122,900 tonnes on Friday -- down nearly 40 percent since the start of the year.

MCX Copper which hovered around 360 mark gave fresh breakouts touching a new all time Rs 367 per kg before closing at Rs 366.8 per kg. MCX Copper June expiry gained 1.2% during the week. Today the movements are expected to be light as the international markets are closed.

No comments: