India copper reverses gains, lead surges on stocks

MUMBAI, Aug 27 (Reuters) - Indian copper futures gave up gains on Wednesday as global demand concerns offset support from rising crude prices, analysts said.

At 4.41 p.m., the benchmark August copper MCCQ8 on the Multi Commodity Exchange of India (MCX) was down 0.38 percent at 330.90 rupees per kg.

"Rising oil prices have been supporting copper throughout the day but global demand is still weak and market talk of refined copper shipment going into China is weighing on prices" said an analyst with a Delhi-based brokerage.

Upside sentiment was capped by talks of a huge delivery of refined copper into China from Chile, which the markets feared would take away support from falling Shanghai inventories.

LME inventories for copper, used in power and construction industries, rose 950 tonnes to 167,850 tonnes, the highest level since February 6.

Resistance for the August contract is pegged at 337.70 rupees and support seen at 327.65 rupees, said Dharmesh Bhatia, senior technical analyst, Kotak Commodity Services Ltd.

Lead futures surged more than 3 percent after stocks on the LME fell sharply. Lead stocks on the LME fell 3,050 tonnes to 83,375 tonnes on Wednesday.

At 4.53 p.m benchmark lead for August delivery MLDQ8 on the MCX was up 2.82 percent at 83.95 rupees per kg.

Zinc futures also rose on Wednesday after LME stocks fell 1,300 tonnes to 161,225 tonnes. At 4.54 p.m., August zinc MZIQ8 on the MCX was up 0.58 percent at 77.80 rupees a kg.