Copper rebounds on higher global cues

Buoyed by a firming trend overseas and a pick-up in domestic spot demand, copper prices recovered by 0.73% to Rs 387.75 per kg in futures trade today.

At the Multi Commodity Exchange, November copper rose by Rs 2.80, or 0.73%, to Rs 387.75 per kg, with an open interest for 2,836 lots.

The February contract was up by Rs 2.85, or 0.73%, at Rs 392.45 per kg in 296 lots.

Globally, copper for three-month delivery jumped by 1.8% to $7,865 a tonne on the London Metal Exchange (LME).

Market analysts attributed the rebound in copper in futures trade to a firming trend on the LME on speculation that the recent decline was excessive, coupled with a fall in stockpiles monitored by the exchange.

Copper inventories monitored by the LME declined for the ninth consecutive session, extending their biggest monthly slide since June, 2009. Stockpiles dropped 1.1% to 424,750 tonnes, the lowest level since March 3.