Copper prices declined to settle at Rs 620.80 per kg on January 8 as participants reduced their positions as seen by the open interest. The metal opened on a positive note and touched the high of January series but was unable to hold on to the gains and ended in the red, tracking firm dollar and sell-off in global commodities.
The base metal ended the week with a gain of Rs 25.45, or 4.28, percent for the week. On the MCX, copper prices rose in four of the five trading sessions.
Copper stock on the last day of 2020 fell 29.9 percent from the previous year to 86,679 tonnes at the Shanghai Exchange accredited warehouses, ShFE data showed.
The US dollar settled modestly higher at 90.02 or up 0.26 percent on January 8 against a basket of six currencies. The greenback gained 0.14 percent during the week on safe-haven buying.
“After the victory for the Democrat party in the US there is potential for more upside in the copper. Biden is in favor of infrastructure spending and budgeting around $2 trillion in coming years. Technically, MCX copper prices are trading in uncharted territory. The trendline is showing Rs 645- 650 levels on the MCX is possible in the next coming week”, said Kshitij Purohit, Product Manager, Currency & Commodities, CapitalVia Global Research Limited.
MCX iCOMDEX Base Metal Index edged lower 275.49 points, or 1.95 percent, to end at 13,849.57.
In the futures market, copper for January delivery touched an intraday high of Rs 631.20 and a low of Rs 615.10 per kg on the MCX. So far, in the current series, the base metal has touched a low of Rs 548 and a high of Rs 631.20.
Copper delivery for January eased Rs 7.30, or 1.16 percent, to settle at Rs 620.80 per kg with a business turnover of 3,921 lots. The same for the February contract dropped Rs 5.05, or 0.80 percent, to close at Rs 622.35 per kg with a turnover of 314 lots.
The value of January and February’s contracts traded on Friday was Rs 3,648.01 crore and Rs 110.57 crore, respectively.
The red metal price end with a loss of 1.11 percent quoting at $8,081.25 per tonne in London.
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