Do More With Reuters
Partner Services

India copper weak on gloomy demand outlook

Wed Nov 19, 2008 6:50pm IST
 
Email | Print | | Single Page
[-] Text [+]

(Recasts, updates prices, adds background, zinc, lead)

MUMBAI, Nov 19 (Reuters) - Indian copper futures continued trading weak on Wednesday as increasing pessimism among investors about demand for industrial metals kept prices pressured, analysts said.

At 5.43 p.m., the benchmark November copper MCCX8 was down 1.22 percent at 181.55 rupees per kg.

"Copper still looks weak and would remain in a small range with negative bias for some days," said U. Arun Kumar, an analyst with Bhavishya Advisory Pvt Ltd.

In the short-term prices may trade between 185 rupees and 180 rupees, two analysts said. They however see prices falling to 150 rupees levels in the medium to long-term.

India copper prices have fallen about 54 percent from a record 385.3 rupees reached in July 2008.

The news flow was bearish, with U.S. automakers going cap in hand to a reluctant Bush administration for aid, while U.S. producer prices dropped and a housing sentiment index slumped to its lowest since the measure was stared in 1985.

The U.S. is the second largest consumer of base metals in the world.

Rising copper inventories in warehouses monitored by the London Metal Exchange rose 1,475 tonnes to 280,050 tonnes on Wednesday and weighed on prices. See[LME/STX1]  Continued...

Russian Finance Minister Alexey Kudrin poses with his G20 colleagues and central bank leaders during the family photo at the G20 Finance Ministers meeting at a hotel in St. Andrews, Scotland. REUTERS/POOL New
Pledge to support economies

G20 financial leaders pledged to prepare strategies to end emergency support for their economies, but to keep the aid flowing until recovery was assured.  Full Article | Related Story 

special coverage

Photo
Central Banks Cautious

Reuters tracks the policies of the world's top central banks as the debate over global economic recovery rages on.  Full Coverage 

Market Update

  • IndiaIndia
  • USUS
  • UKUK
  • Asia
  • Most Actives

SHOWCASE

Sanjay Sinha
Balancing Act

In India, it is a tough choice between growth, managing inflation and financial stability.  Full Article 

 
Nipun Mehta
Road to Recovery

There needs to be an acceptable balance created between education and healthcare and infrastructure spend, says Nipun Mehta of SG Private Banking.   Full Article 

 
Robot Asimo

Snapshots of Honda Motor's humanoid robot Asimo  Slideshow 

 
Marketing Strategy
Marketing Strategy

Companies are now using direct marketing methods to sell their products.  Full Article 

 
Exit Plans
Exit Plans

Factbox - Stimulus exit plans for Asia-Pacific's big 5 economies  Full Article