Copper falls by 1.6% on weak global cues

Copper prices fell sharply by 1.64% to Rs 397 per kg in futures trade today as speculators offloaded their positions after the metal slid to a four-year low in global markets.

At the Multi Commodity Exchange, copper for delivery in far-month April 2015 contracts was trading lower by Rs 6.60, or 1.64%, to Rs 397 per kg in business turnover of 59 lots.

Similarly, the metal for delivery in February traded lower by Rs 6.20, or 1.56%, to Rs 392.20 per kg in 1,923 lots.

Analysts attributed the fall in copper futures to a weak trend in metal at the London Metal Exchange (LME) as a rout in the energy market drove commodities lower and after data showed manufacturing activity slowed in China, the biggest consumer.

Besides, rising global inventory also put pressure on prices, they said.

Copper inventory monitored by the LME rose to 164,300 metric tonnes on November 28, the highest since June, daily bourse data show.

Meanwhile, copper for delivery in three months fell by 1.9%, to $6,230.75 per tonne, the lowest intra-day level since June 10, 2010, while at Shanghai Futures Exchange, the metal for February delivery dropped by 3.7% to 44,300 yuan ($$7,207) a tonne.