Copper prices decreased to Rs 519.1 per kg on August 27 as participants increased their short positions.
Stocks at accredited warehouses of the London Metal Exchange (LME) declined to 2006 lows and tightness in the physical market is supporting prices.
Production at the world second-largest copper mine at Indonesia’s Grasberg has been disrupted by protest for the third day.
In the futures market, copper for September delivery touched an intraday high of Rs 523 and a low of Rs 517.10 per kg on the Multi-Commodity Exchange (MCX). So far in the current series, the precious metal has touched a low of Rs 486 and a high of Rs 531.
Copper futures for September delivery slipped Rs 1.9, or 0.36 percent, to Rs 519.1 per kg at 20:20 hours on a business turnover of 4,175 lots. The same for October delivery was flat at Rs 516.05 per kg on a turnover of 127 lots.
The value of September and October’s contracts traded so far is Rs 2,142.19 crore and Rs 30.09 crore, respectively.
On the hourly chart, copper has started to trade below its 9, 21 and 60 Exponential Moving Average (EVA), which is a bearish sign for prices.
"Copper is seeing resistance near its 50 percent retracement and failing to break over that. Any break down below Rs 517.50 would drag prices lower towards Rs 513-512 levels in intraday trade," Axis Securities said.
At 1454 (GMT), the red metal price was down 0.26 percent at $6,581.5 per tonne in London.For all commodities related news, click here