Copper weaken on sluggish spot demand

Copper futures prices declined by 0.59% to Rs 420 per kg today after traders reduced positions in tandem with subdued spot demand, however a firm trend overseas restricted the losses.

At the MCX, copper for delivery in August lost Rs 2.50, or 0.59%, to Rs 420 per kg, with a trading volume of 524 lots.

The metal for delivery in the ongoing June also fell by Rs 2.25, or 0.54%, to trade at Rs 415.45 per kg, with a trading volume of 4,067 lots.

Analysts said the fall in copper futures prices was mostly due to a weakening trend in spot markets owing to slackened demand but recovery in base metals at the London Metal Exchange and in Asian region cushioned the fall.

Meanwhile, copper for three-month delivery rose by 0.9% to USD 7,374 a tonne at the LME, while on the Shanghai Futures Exchange, it inched up 0.2% to 54,190 yuan (USD 8,500) a tonne.