With the market facing liquidity crunch, owing to the '06 financial year nearing its end, base metals copper and brass saw drop in prices by about Rs 5-Rs 8 per tonne. | |
| "This is a temporary drop with traders facing tight money position.This is usual at this time of the year with the financial year nearing its end," said a trader. |
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| Base copper was down by about Rs 5 at Rs 146-Rs 152 per kg, depending on the type. Similarly, brass was down at Rs 196 per kg. |
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| Internationally too, copper has been facing pressure owing to miners strike in London and speculation on the ongoing meeting of Bank of Japan on monetary policy. |
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| "A breach of February's lows could see copper heading down towards $4,200 per tonne although it may find some intermediate support around $4500," said a trader. |
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| On the other hand, market sentiment was buoyed with the three-month London Metal Exchange copper contract sustained support at $4,650 per tonne. |
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| The futures contract was trading at $4,740/$4,750 per tonne, up 0.4 per cent against Wednesday's London kerb close of $4,720. It had dropped as low as $4,672 in London. Copper futures in Shanghai rose on bargain hunting, reflecting firmer LME prices. |
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| In the domestic market, metal consumption has slumped by more than 90 per cent as traders expect prices to fall. Lead and zinc are gaining momentum on supply concerns despite slow demand in the domestic market. World zinc prices are expected to remain high in 2006 owing to supply shortage in major producing centres. |
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| Globally, an expected rise in Chinese imports coupled with already low inventories will keep refined world zinc supply in deficit for the third consecutive year. |
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