Copper futures rise 0.85% to Rs 514.1 per kg on strong demand

Copper prices surged to Rs 514.1 per kg on August 17 as participants increased their long positions. Prices resumed their uptrend on signs of easing US-China trade tensions.

The commodity slipped last week into the red as US-China tensions deepened and Chilean miner Codelco announced that it would resume operations stalled by the coronavirus pandemic.

China’s copper imports rose for the second straight month in July, buoyed by favourable international prices that kept an arbitrage window open and on strong demand from China.

In the futures market, copper for August delivery touched an intraday high of Rs 514.75 and a low of Rs 510.15 per kg on the Multi-Commodity Exchange (MCX). So far in the current series, the precious metal has touched a low of Rs 441 and a high of Rs 516.40.

Copper futures for August delivery gained Rs 4.35, or 0.85 percent, to Rs 514.10 per kg at 17:45 hours on a business turnover of 4,347 lots. The same for September delivery jumped Rs 3.85, or 0.77 percent, to Rs 506.50 per kg on a turnover of 371 lots.

The value of August and September’s contracts traded so far is Rs 1,185.03 crore and Rs 23.89 crore, respectively.

Tapan Patel- Senior Analyst (Commodities), HDFC Securities, expects base metals to trade higher on positive global cues. "MCX August Copper futures have important support at Rs 510 and resistance at Rs 516."

At 12:18 (GMT), the red metal price was up 1.09 percent at $6,437.25 per tonne in London.