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India copper falls, eyes US data for further cues

Tue Dec 2, 2008 6:27pm IST
 
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(Updates prices, adds fresh comment, details)

MUMBAI, Dec 2 (Reuters) - India copper futures continued trading down on Tuesday as the demand outlook for base metals remained bleak, analysts said.

At 5.55 p.m., benchmark February copper MCCG9 on the Multi Commodity Exchange of India (MCX) was down 1.59 percent at 185.45 rupees per kg.

News that China's mineral-rich border region of Guangxi may consider purchasing base metals failed to support prices. [nPEK236115]

Prices, however had held up for a while in the previous session on news that China's Yunnan province would build a stockpile of base metals.

Copper prices have fallen over 50 percent from the year's high hit in July.

"Demand continues to be absent because of the global economic condition and so the bearish long-term trend remains intact for metals," said Somnath Dey, incharge, metals and energy research, Religare Commodities Ltd.

Copper stocks on the London Metal Exchange rose 1,825 tonnes to 293,025 tonnes on Tuesday.

Traders will be looking out for the U.S. auto sales data, due for later in the the day for further direction, analysts said.  Continued...

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