Copper futures firm at Rs 532.30 per kg on strong demand

Copper prices edged higher to Rs 532.30 per kg on September 15 as participants increased their long position as seen by the open interest. The Base metals traded firm on Tuesday tracking weakness in US dollar.

Copper price gained on strong demand in China, low inventories in LME accredited warehouses and tightness in physical market.

The US dollar index traded weaker at 92.93 down 0.14 percent ahead of US Fed policy statement tomorrow.

China Industrial output expanded for the fifth successive month growing 5.6 percent in August boosted industrial metal demand.

Sumeet Bagadia, Executive Director, Choice Broking expects copper futures to trade bullish amid a recovery in the global economic activities especially South Asia and China.

Refinery production in the major countries of Chile, Peru and China is forecast to decline which could have an adverse bullish impact in prices due to supply tightness, he said, adding, the mixed inventories at the LME warehouses are estimated to cushion prices from the lower levels.

Possible further recovery of the global economy, with hopes of the additional stimulus package in the US, is expected to improve the base metals buying in the international markets, he said.

In the futures market, copper for September delivery touched an intraday high of Rs 532.90 and a low of Rs 528.80 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 532.40.

Copper delivery for September contract gained Rs 3.10, or 0.59 percent, to Rs 532.30 per kg at 18:28 hours with a business turnover of 5,218 lots. The same for October contract jumped 3.95, or 0.76 percent to Rs 526.30 per kg with a turnover of 444 lots.

The value of September and October’s contracts traded so far is Rs 1,429.84 crore and Rs 18.47 crore, respectively.

MCX Copper price is expected to trade in a range-bound market having support at Rs 528 and resistance at Rs 532 levels, according to Motilal Oswal.

At 1301 (GMT), the red metal price was up 0.40 percent quoting at $6,808.75 per tonne in London.