Copper edges higher as inventories decline at LME

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.
    
At the London Metal Exchange,the copper for three-month delivery gained as much as 0.64 per cent to $6,560 a metric tonne.
    
Meanwhile, inventories monitored by the LME continued to decline for the 22nd straight day and down to 4,22,850 tonne, the lowest level since November 20.
    
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.