Copper futures trade weak at Rs 523.45 per kg

Copper prices traded lower at Rs 523.45 per kg on October 15 as participants increased their short positions on gains in the dollar and weakness in equity markets.

The US Dollar Index traded firm at 93.81, up 0.48 percent at the day’s high, as weaker risk sentiment increased its safe-haven appeal.

Copper is rangebound as support from higher Chinese imports and supply concerns in Chile, amid a possible strike threat, was countered by rising stocks at approved warehouses of the London Metal Exchange (LME).

MCX iCOMDEX Base Metal Index was trading down 45.27 points, or 0.38 percent, at 11,852.53 at 18:22 hours.

In the futures market, copper for October delivery touched an intraday high of Rs 527.40 and a low of Rs 521.30 per kg on the Multi-Commodity Exchange (MCX). So far in the current series, the precious metal has touched a low of Rs 494.80 and a high of Rs 532.60.

Copper futures for October delivery dropped Rs 1.6, or 0.3 percent, to Rs 523.45 per kg at 18:23 hours on a business turnover of 5,358 lots. The same for November delivery slipped Rs 2.65, or 0.5 percent, to Rs 522.25 per kg on a turnover of 1,031 lots.

The value of October and November’s contracts traded so far is Rs 1,285.43 crore and Rs 30.37 crore, respectively.

Neha Qureshi, Technical Research Analyst at Reliance Securities, said, “Copper is struggling to sustain above $6,700 levels, which signifies that the sideways momentum will continue in a range of $6,650-$6,740 in coming sessions."

In the domestic market, Qureshi sees the red metal trading sideways between Rs 520 and Rs 530 levels.

Geojit Financial Services warned that a fall below Rs 521 could push copper prices to Rs 517.70 levels. “As long as the downside hurdle of Rs 521 remains untouched, one could expect prices to recover in the coming session towards Rs 528 and then Rs 533.50."

At 12:57 (GMT), the red metal price was up 0.20 percent at $6,703.25 per tonne in London.

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