Copper futures steady at Rs 520.10 per kg in evening trade

Copper prices were flat at Rs 520.10 per kg on September 2 as participants increased their long position as seen by the open interest. The base metal prices were steady after showing some weakness earlier amidst the strength in the dollar and recovery in output in Peru.

Copper prices were supported by dwindling stocks at LME warehouses and tightness in the physical market. The metal stock at LME fell by 1,100 tonnes on September 1 to hit the lowest since December 2005.

In the futures market, copper for September delivery touched an intraday high of Rs 523.70 and a low of Rs 519.50 per kg on the MCX. So far in the current series, the precious metal has touched a low of Rs 486 and a high of Rs 531.

Copper delivery for September contract slipped Rs 1.60, or 0.31 percent, to Rs 519.85 per kg at 19:04 hours with a business turnover of 4,538 lots. The same for October contract was down 1.25, or 0.24 percent, to Rs 516.85 per kg with a turnover of 230 lots.

The value of September and October’s contracts traded so far is Rs 1,319.59 crore and Rs 19.05 crore, respectively.

MCX Copper price is expected to trade negatively with resistance at Rs 526 and intermediate resistance at Rs 524 level, according to Motilal Oswal. The brokerage firm advised its clients to sell on rallies targeting lower support at Rs 521-519 zone.

At 1336 (GMT), the red metal price was down 0.52 percent quoting at $6,647.75 per tonne in London.