Copper weakens by 0.2% on global cues

Copper prices fell 0.23% to Rs 328.95 per kg in futures market today as speculators reduced positions amid a weak trend in global markets.

At the Multi Commodity Exchange, copper for delivery in August traded lower by 75 paise, or 0.23%, to Rs 328.95 per kg in a business turnover of 1,394 lots.

Also, metal for delivery in far-month November month fell by 70 paise, or 0.21%, to Rs 336.10 per kg in 41 lots.

Market analysts said weak trend in metal overseas, where it dropped to a six-year low and other industrial metals declined after inflation and trade data from China underscored weakening demand in the world's biggest consumer, weighed on copper futures here.

Meanwhile, China's producer-price index fell 5.4%, exceeding the median estimate for a 5% decrease, while exports sagged 8.3%, below the estimate for a 1.5% decline.

The figures give a further indication that demand for Chinese goods is not improving despite government stimulus measures to arrest a slowdown in China's economy.

Meanwhile, copper for delivery in three months retreated 1.1% to $5,118 a metric tonne on the London Metal Exchange, adding to a five-week decline in its worst run since January.

In Shanghai, the metal for delivery in declined 0.7%.