Copper falls by 0.9% on global cues, low demand

Speculators cut down their positions, tracking a weak trend overseas

Tracking a weak trend overseas and sluggish demand in the domestic spot markets, copper prices fell 0.90% to Rs 337.35 per kg in futures trade today as speculators cut down their positions.

At the Multi Commodity Exchange, copper for delivery in April declined by Rs 3.05, or 0.90%, to Rs 337.35 per kg in a business turnover of 1,505 lots.

On similar lines, the metal for delivery in far-month June shed Rs 2.60, or 0.75%, to Rs 342 per kg in 12 lots.

Marketmen attributed the fall in copper prices at futures trade to a weak trend in base metals overseas as Goldman Sachs Group Inc reiterated its view that the structural drivers for last year's slump in prices remain intact.

Globally, copper for delivery in three months retreated 1.2% to $4,941.50 per tonne on the London Metal Exchange.

Goldman said it sees copper and aluminum prices falling as much as 20% in the next 12 months and views long positions in zinc as risky, according to a note dated March 7.