European Session Brings Correction In Copper

Copper........

European trading session again brought selling pressure back in Copper and other base metals. Metals strength has been quite lackluster as the markets now focus on IMF growth projections. Last night strength after positive indications from US housing markets and industrial production has been lost. International Monetary Fund (IMF) has slashed its forecast for global growth to 3.3 percent in February from projection of 3.5 percent in January 2013. Forecast for global growth in 2014 was lowered to 4 percent from 4.1 percent in earlier forecast. The forecast of China was lowered to 8 percent in February from 8.2 percent. Red metal was expected to show some strength after a halt in Copper inventories rise was noted. Copper inventories declined by 3400 tonnes on Wednesday to 608525 tonnes. Copper inventories have increased by 92 percent in 2013. LME Copper was trading at $ 7175 per tonne, down 1 percent from previous day's close. MCX Copper near month futures was trading at Rs 387.6 per kg, down 1.8 percent. The prices tested a low of Rs 385.3 per kg in the day. The Chile based mining major Antofagasta reported that the production of Copper for the full year ended 2012 was 709600 tonnes; this was 11 percent increase from the previous year. The company expects production to remain lower this year to 698000 tonnes basically on account of slight decrease in ore grades in Los Pelambres. The company said that the Group copper production in 2013 is expected to be approximately 700000 tonnes. Last night, the Industrial production in US rose 0.4 percent in March unlike analyst's expectations of 0.2 percent. The production was higher than expected but lowers from 1.1 percent in the month of February. US housing starts rose to 1.036 million in the month of March from 0.939 million in the month of February 2013. Source by Commodity Insights