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Tight Range Continues In Copper

Copper remained trading in a tight range on the back of holiday thinned season. LME three months Copper prices were trading at $ 7258 per tonne, up $ 20 per tonne. A trading range of $ 6800-7500 per tonne, the same seen in November remained active in December 2013 as well. The prices of Copper have corrected by 10.7% in 2013. The prices are expected to be in a similar mode for rest of the year.

Indian Copper that closely tracks the moves of international markets was trading at Rs 458.4 per kg, up 0.30%. Indian Copper prices have seen a divergent move from its European counterpart. The prices of Indian Copper have seen an increase of 3.36% year to date.

Meanwhile, Federal Reserve decided to slash the quantitative stimulus measure by $10 billion per month. This move was expected to be negative for Copper, but the prices cheered the fact that it also indicated a rise of economic condition in US.

In Inventories, the drawdown has started in the last month on the back of supply crisis. This also led the prices to turn into backwardation. Copper has been charging as the inventories have seen a constant drawdown in fears of lower supplies in the markets.

Source : Capital Market


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