Copper futures slump 3.56% to Rs 506.50 per kg on weak global cues

Copper prices edged lower to Rs 506.50 per kg on October 1 as participants increased their short positions. The base metal packs came under intense selling pressure in the evening session tracking weak global cues.

The commodity traded lower on concerns that surging coronavirus cases globally may derail the nascent pace of a global economic recovery and rising copper inventory at London Metal Exchange (LME) accredited warehouses. Copper stocks on the LME rose 91,975 tonne in the last three sessions having more than doubled from the past week.

Sriram Iyer, Senior Research Analyst at Reliance Securities, said, "Dollar weakness and slightly upbeat data from US and China over the past few sessions have lent support.”

MCX iCOMDEX Base Metal Index was down 248.68 points, or 2.13 percent, at 11,422.37 at 19:30.

In the futures market, copper for October delivery touched an intraday high of Rs 526.50 and a low of Rs 506.20 per kg on the Multi-Commodity Exchange (MCX). So far in the current series, the precious metal has touched a low of Rs 501.85 and a high of Rs 532.60.

Copper futures for October delivery declined Rs 18.70, or 3.56 percent, to Rs 506.50 per kg at 19:46 hours on a business turnover of 4,974 lots. The same for November delivery dropped Rs 16.90, or 3.24 percent to Rs 505.50 per kg on a turnover of 210 lots.

The value of October and November’s contracts traded so far is Rs 2,937.08 crore and Rs 45.76 crore, respectively.

At 14:06 (GMT), price of the red metal fell 3.13 percent at $6,477.25 per tonne in London.

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