Copper falls by 0.5% on global cues

Copper prices moved down by 0.54% to Rs 404.20 per kg in futures trade today as speculators reduced positions amid a weak trend overseas and low demand in the spot market.

At the Multi Commodity Exchange, copper for delivery in February next year contracts shed Rs 2.20, or 0.54%, to Rs 404.20 per kg in a business turnover of 460 lots.

Likewise, the metal for delivery in far-month April 2015 contracts traded lower by Rs 1.85, or 0.45%, to Rs 408.20 per kg in 19 lots.

Analysts said the fall in copper prices at futures trade was largely in tune with a weak trend in base metals at the London Metal Exchange (LME) on concern demand is slowing in China after factory-gate deflation deepened and consumer prices climbed at the slowest pace since 2009 in the world's biggest consumers of industrial metals.

Besides, low demand from domestic industries too had negative impact, they said.

Meanwhile, copper for delivery in three months retreated 0.50% to $6,445.25 a metric tonne at the LME, while at Shanghai.