LONDON (Commodity Online): If you haven't paid due attention to the movements of copper prices in the market, this is the right time to do so.
Copper inventories fell further as measured by the London Metals Exchange, by 0.8 per cent to 423,850 tonnes, the lowest level since November 20. Copper supplies are down a staggering 16 per cent this year.
The copper price rose 85 cents overnight to close at $2.938 a pound, as measured by Copper futures for September delivery. Despite the lower copper inventories, the copper price has fallen 12 per cent this year. Not a bad result considering the global economic canvas where global demand has slumped for the red metal.
Economic news continues to whittle away at the confidence of investors as a private report showed confidence among builders in the US fell to the lowest level since April 2009. Construction accounts for a quarter of all copper consumption.
In India, copper futures extended gains for the second straight day and traded Rs 1.90, or 0.61 per cent, higher at Rs 313.50 per kg, due to low inventories at the London Metal Exchange.
Besides, optimism that economic growth in China, the world's largest user, will boost demand and offset a slowdown in the US and Europe.
On the Multi Commodity Exchange platform, copper for delivery in November contract gained Rs 1.90, or 0.61 per cent, to Rs 313.50 per kg, with a business volume of three lots.
The metal for delivery in August contract also traded higher by Rs 1.85, or 0.60 per cent, to Rs 310.30 per kg, with a turnover of 17 lots.
Analysts said positive trend in global markets on expectations of pick up in global demand for the metals and falling stockpiles, influenced the copper prices at futures market here.