| Mumbai: Global copper prices may be subdued until September due to reduced industrial demand from China. Chinese copper demand may come down as the country plans to curb industrial pollution in and around Beijing, where the 2008 Summer Olympics will be held next month. China consumes nearly 25 per cent of world's copper production and therefore demand - supply situation in the country plays a significant role in setting global price trend for the base metal. | ||
Showing posts with label Copper Prices. Show all posts
Showing posts with label Copper Prices. Show all posts
Thursday, July 10, 2008
Copper Likely To Hit A Low Patch As China Curbs Use - July 10, 2008
Tuesday, June 24, 2008
Indian Copper Slips - June 24, 2008
Indian copper futures fell more than a percent in late trade as a strong dollar and falling imports from China forced the red metal to drift lower. At 6.26 p.m., the benchmark June copper MCCM8 on the Multi Commodity Exchange of India (MCX) was down 1.04 percent at 358.55 rupees per kg.
The dollar gained on Monday as some investors bet on a message from the Federal Reserve later in the week.A strengthening dollar makes dollar-denominated commodities expensive for holders of other currencies and caps demand.Sentiment was also dampened by the weak Chinese import figures. China's refined copper imports fell 26.4 percent on month and 19 percent on year in May on the back of strong international prices. Copper inventories in exchanges monitored by the London Metal Exchange fell 875 tonnes to 123,125 tonnes, but failed to turnaround sentiment.
The dollar gained on Monday as some investors bet on a message from the Federal Reserve later in the week.A strengthening dollar makes dollar-denominated commodities expensive for holders of other currencies and caps demand.Sentiment was also dampened by the weak Chinese import figures. China's refined copper imports fell 26.4 percent on month and 19 percent on year in May on the back of strong international prices. Copper inventories in exchanges monitored by the London Metal Exchange fell 875 tonnes to 123,125 tonnes, but failed to turnaround sentiment.
Friday, May 9, 2008
LME Copper Lost
Base metals prices were expected to show some downturn in the evening trades after the poor show in the opening trades and that happened although Dollar was weak against the majors after the rate decision from Bank of England and ECB. As per the expectations BOE hold the key rates at 5% on inflationary concerns while ECB went undeterred at 4%.
LME Copper lost by $ 120 in London trade to close $ 8315 per tonne. The dollar was modestly lower Thursday, losing ground to the euro and the pound after both the European Central Bank and the Bank of England both decided to hold policy steady. ECB President Jean-Claude Trichet cited inflation risks in his statement, further bolstering the common currency.
The dollar index, which measures the greenback against a basket of six major currencies, fell 0.2% to 73.37. Dollar weakness typically benefits dollar-denominated commodities, such as gold and crude oil, because it makes them cheaper for holders of other currencies.
LME Copper Inventories data for the day showed a appreciation of 1100 tonnes to 110125 tonnes in Copper inventories. MCX Copper for June expiry closed the day at Rs 345.50 per kg down almost Rs 2, Copper will find Supports at 344 and 342 levels today while Resistances are at 350 levels.
The end of a 20-day contract workers' strike at Codelco in Chile, the world's largest copper producer, has calmed fears of a supply short-fall for the red metal, taking the heat out of recent price gains.
MCX Aluminium May expiry contract closed the day Rs 118.5 per kg down Rs 0.30, Resistances for the contracts are at 120 levels with Supports at 117.70. Nickel closed the trading at Rs 1139 per kg down Rs 28.50, Supports for the contract are at 1135 with Upper Cap at 1177 levels. Zinc and Lead closed at Rs 92.30 and Rs 97.25 per kg respectively. Zinc will find resistances at 94 levels with Lower level support at 91 levels, on the other hand Lead Supports will be at 96 levels with Resistances at 101 levels.
In other metals traded on the LME, Zinc for delivery in three months closed at $ 2210 per tonne against $ 2240, Zinc Inventories data showed a rise of 375 tonnes to 125725 tonnes, while Aluminium was down at $ 2880 per tonne down $ 35. Inventories data for Aluminium showed a depletion in the inventories to the tune of 925 tonnes to 1038350 tonnes. Lead closed the trading at $ 2315 per tonne against $ 2415 per tonne, while Nickel lost heavily to close at $ 27250 per tonne against $ 28400. Tin went up by $ 400 till the close at $ 24400 per tonne as against $ 24000.
LME Copper lost by $ 120 in London trade to close $ 8315 per tonne. The dollar was modestly lower Thursday, losing ground to the euro and the pound after both the European Central Bank and the Bank of England both decided to hold policy steady. ECB President Jean-Claude Trichet cited inflation risks in his statement, further bolstering the common currency.
The dollar index, which measures the greenback against a basket of six major currencies, fell 0.2% to 73.37. Dollar weakness typically benefits dollar-denominated commodities, such as gold and crude oil, because it makes them cheaper for holders of other currencies.
LME Copper Inventories data for the day showed a appreciation of 1100 tonnes to 110125 tonnes in Copper inventories. MCX Copper for June expiry closed the day at Rs 345.50 per kg down almost Rs 2, Copper will find Supports at 344 and 342 levels today while Resistances are at 350 levels.
The end of a 20-day contract workers' strike at Codelco in Chile, the world's largest copper producer, has calmed fears of a supply short-fall for the red metal, taking the heat out of recent price gains.
MCX Aluminium May expiry contract closed the day Rs 118.5 per kg down Rs 0.30, Resistances for the contracts are at 120 levels with Supports at 117.70. Nickel closed the trading at Rs 1139 per kg down Rs 28.50, Supports for the contract are at 1135 with Upper Cap at 1177 levels. Zinc and Lead closed at Rs 92.30 and Rs 97.25 per kg respectively. Zinc will find resistances at 94 levels with Lower level support at 91 levels, on the other hand Lead Supports will be at 96 levels with Resistances at 101 levels.
In other metals traded on the LME, Zinc for delivery in three months closed at $ 2210 per tonne against $ 2240, Zinc Inventories data showed a rise of 375 tonnes to 125725 tonnes, while Aluminium was down at $ 2880 per tonne down $ 35. Inventories data for Aluminium showed a depletion in the inventories to the tune of 925 tonnes to 1038350 tonnes. Lead closed the trading at $ 2315 per tonne against $ 2415 per tonne, while Nickel lost heavily to close at $ 27250 per tonne against $ 28400. Tin went up by $ 400 till the close at $ 24400 per tonne as against $ 24000.
Monday, March 31, 2008
Copper Prices May Rule Weak, Not Withstanding Recent Rally
Mumbai: Despite the recent rally in copper prices, the overall undertone still remains bearish with a decline in Chinese and the US demand expected in second quarter of the calendar year.
Copper prices in the first quarter of 2008 have gained about 26 per cent and it was quoting at $8,180 a tonne on Friday. The three-month futures contract on LME was quoting at $8,350 per tonne.
Warehouse holdings
On Friday, copper inventory in LME warehouses came down by 825 tonnes to 1.17 lakh tonnes, just enough for two days of world consumption. The inventory holding has shrunk over 40 per cent since January. However, in China, the largest consumer of copper, it is piling up. Shanghai Futures Exchange accredited warehouses report a 200 per cent jump in warehouse holdings to 61,233 tonnes.
Institutional investors and hedge funds have been chasing metals in the last three months after the dollar lost its sheen against major currencies. Buoyant demand from China and concerns over supply from mines also helped copper sustain a higher price level. China’s copper consumption is expected to rise 11 per cent to 1.28 million tonnes (mt) in Q1 of 2008. China’s copper import rose 4.6 per cent to 2.39 lakh tonnes in January against 2.24 lakh tonnes in December last, an increase of 6.27 per cent — the highest since April last year.
“The import figures indicate that the shipments to China will slowdown in the coming days at it has already stored huge quantities of copper,” said Kishore Narne, Vice-President, Head-Commodity Research, Anand Rathi. The demand in China rose by 35 per cent to 4.861 mt in 2007, accounting for nearly quarter of world demand, which is estimated at 17.92 mt.
Production to be hit
World copper mine production is expected to increase by 7.6 per cent to 17 mt in 2008, owing to new mine development and increased capacity utilisation. Recent snowfall and extremely cold weather conditions in China, for the last two months, have disrupted mining activity. Moreover, power shortage in South Africa is expected to curtail mining activity. The country seems to have lost almost 10 per cent of production in February.
Global refined copper production in 2008 is estimated to increase by 4.6 per cent to 18.57 mt.
Many smelters in China have shut shop indefinitely due to power shortage. Problems for smelters in and around Beijing seem to be more acute as they have been told to stop production to control pollution ahead of forthcoming Olympic Games.
“An increase in operating expenditure due to higher power cost, delay in new refinery capacity additions due to equipment shortage and capex cost increase should have a negative impact on mining and refining activities in 2008,” said Narne.
Copper prices in the first quarter of 2008 have gained about 26 per cent and it was quoting at $8,180 a tonne on Friday. The three-month futures contract on LME was quoting at $8,350 per tonne.
Warehouse holdings
On Friday, copper inventory in LME warehouses came down by 825 tonnes to 1.17 lakh tonnes, just enough for two days of world consumption. The inventory holding has shrunk over 40 per cent since January. However, in China, the largest consumer of copper, it is piling up. Shanghai Futures Exchange accredited warehouses report a 200 per cent jump in warehouse holdings to 61,233 tonnes.
Institutional investors and hedge funds have been chasing metals in the last three months after the dollar lost its sheen against major currencies. Buoyant demand from China and concerns over supply from mines also helped copper sustain a higher price level. China’s copper consumption is expected to rise 11 per cent to 1.28 million tonnes (mt) in Q1 of 2008. China’s copper import rose 4.6 per cent to 2.39 lakh tonnes in January against 2.24 lakh tonnes in December last, an increase of 6.27 per cent — the highest since April last year.
“The import figures indicate that the shipments to China will slowdown in the coming days at it has already stored huge quantities of copper,” said Kishore Narne, Vice-President, Head-Commodity Research, Anand Rathi. The demand in China rose by 35 per cent to 4.861 mt in 2007, accounting for nearly quarter of world demand, which is estimated at 17.92 mt.
Production to be hit
World copper mine production is expected to increase by 7.6 per cent to 17 mt in 2008, owing to new mine development and increased capacity utilisation. Recent snowfall and extremely cold weather conditions in China, for the last two months, have disrupted mining activity. Moreover, power shortage in South Africa is expected to curtail mining activity. The country seems to have lost almost 10 per cent of production in February.
Global refined copper production in 2008 is estimated to increase by 4.6 per cent to 18.57 mt.
Many smelters in China have shut shop indefinitely due to power shortage. Problems for smelters in and around Beijing seem to be more acute as they have been told to stop production to control pollution ahead of forthcoming Olympic Games.
“An increase in operating expenditure due to higher power cost, delay in new refinery capacity additions due to equipment shortage and capex cost increase should have a negative impact on mining and refining activities in 2008,” said Narne.
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