Copper up by 0.6% on shrinking global inventories

Copper prices rose 0.61% to Rs 477.80 per kg in futures trade today as speculators enlarged positions, tracking a firming trend in the Asian trade amid fall in global inventories.

 

At the Multi Commodity Exchange, copper for delivery in August edged up by Rs 2.80, or 0.61%, to Rs 477.80 per kg in business turnover of 1,164 lots.

 

The metal for delivery in far-month November traded higher by Rs 2.70, or 0.56%, to Rs 481.75 per kg in 141 lots.

 

Analysts attributed the rise in copper futures to a firming trend in metals in the Asian region on a drop in inventories and speculation that the US Federal Reserve may hold off on curbing stimulus measures in September as new home sales slumped in July.

 

Copper inventories, monitored by the London Metal Exchange (LME) slid for a 28th session, the longest stretch since February 2012, to 564,225 tonnes.

 

In the Asian region, copper futures for delivery in December climbed 1.8% on the Shanghai Futures Exchange to 53,620 yuan ($8,762) a tonne, the highest since May 22. The LME is closed today for a 'bank holiday'.