India copper futures lower on China concerns
(Updates prices)
MUMBAI, Jan 13 (Reuters) - India's copper futures fell by more than 4 percent on concerns over suspension of chinese copper purchases and rising inventory levels, analysts said.
Copper is most likely to take support at 155 (rupees level), a breach of that would take prices tumbling to 140 rupees, said Somnath Dey, in charge, metals and energy research, Religare Commodities in Delhi.
The benchmark copper February contract MCCG9 on the Multi Commodity Exchange of India (MCX) traded lower by 3.38 percent at 157.20 rupees per kg at 5:31 p.m., after hitting a low of 155.6 rupees earlier in the session.
A closing below 160 rupees in copper would confirm a downtrend, said Dharmesh Bhatia, a technical analyst at Kotak Commodity Services in Mumbai.
The contract gained 6.5 percent since the start of the year on index-related buying and also on news that China's State Reserves Bureau's may buy copper.
China's State Reserves Bureau could have suspended planned copper purchases due to rising prices, an official aware of the government's plans and a producer said on Monday, but zinc buying will resume this week. See [ID:nHKG115885]
Copper stocks in the warehouse of the London Metal Exchange rose by 5,350 tonnes to 374,850 tonnes on Tuesday.
LEAD DOWN: Continued...
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