LME Copper was expected to open on a suppressed note and that is what has happened on Tuesday. The metals had extended weekend but have opened in a negative territory with LME Copper down by 2% to $ 7455 per tonne. These are seven month low levels for Copper. The metal used in electricity and construction ended at $ 7613 per tonne last week.
The selling pressure will continue as the US ISM manufacturing numbers were disappointing for the month of March. The PMI registered 51.3 percent, a decrease of 2.9 percentage points from February's reading of 54.2 percent, indicating contraction in manufacturing. New orders index registered a dip of 6.4 percent to 51.4 in the month of March.
LME Aluminium was trading at $ 1900 per tonne on Tuesday compared to $ 1910 per tonne on 28 March and down 7.7% in a month. Weak Aluminium prices have forced major smelters to cut back their production barring those that have facilities in western China where the production costs are much lower.
Indian Aluminium demand will take a hit from the fact that the automobile sales have come down to a 12 year low. The property markets is already suffering from high interest rates and with automobile consumption at more than decade low, Copper consumption can take a beating in the country. MCX Aluminium closed at Rs 104 per kg, up 0.34%. The prices are capped at Rs 105.5 per kg while Support is at Rs 101 per kg.
Source by Commodity Insights
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