Copper weakens on global cues, rising inventory

Sluggish demand in the spot markets also pressurised prices

Copper futures prices today fell by 0.40% to Rs 432 per kg after traders reduced their positions, taking weak cues from global markets, where prices declined on increasing inventories.

Sluggish demand at spot markets also put pressure on the metal's prices.

At the Multi Commodity Exchange, copper for delivery in far-month November lost Rs 1.75, or 0.40%, to Rs 432 per kg, with a trading volume of 457 lots.

The August contract also fell by Rs 1.65, or 0.38%, to trade at Rs 427.75 per kg, with a trading volume of 7,772 lots.

Analysts said the fall in copper futures prices was due to a weakening trend in overseas markets as inventories in London Metal Exchange (LME) warehouses rose for the seventh session to 257,150 tonnes as of June 29 and sluggish domestic demand.

Meanwhile, for three-month copper dropped as much as 0.6% to USD 7,636.25 a tonne at the LME.