Copper tested a fresh three month low as other metal reeled lower on heavy profit booking and move away from riskier assets by the participants. Earlier in the day Shanghai prices crushed heavily and it was indicating a tough task for the metal on LME as well.
The concerns of demand decline from China that was discounting the futures last week continued on Monday as well and resulted in lower offtake. The numbers of 8.1% for Jan-March 2012 has increased fears of further cuts in Copper. China is a world number one consumer of Copper.
Spanish bond yields continued to move forward and kept igniting Eurozone debt crisis and weakening the EURO. The greenback tested a two month high of 1.2993 against the EURO sucking further possibility of a bounce in metals.
The Dollar had last seen this level on 16 Feb 2012. The Dollar is at the bottom end of the range of 1.3367 and 1.2900. Breaching the levels can bring a rise of around 300 pips in Dollar. LME Three month forward breached $ 8000 per ton and tested a three month high and was trading at $ 7981 per ton. Copper inventories declined by 2700 tons today to 261700 tons even than prices declined.
MCX Copper tested a two month low of Rs 407.8 per kg today and was trading at Rs 411 per kg. The prices are expected to remain under pressure with targets of Rs 405 per kg.
Aluminium showed a decline to $ 2080 per ton on Monday, from $ 2088 per ton on Friday. Aluminium inventories declined by 7425 tons to 5045275 tons on Monday.
Indian Aluminium futures are trading at Rs 106.2 per kg, up by 0.4%. The metal is the only one trading in green at this juncture.
Nickel is trading at $ 18095 per ton, compared to $ 18455 per ton last week. MCX Nickel is trading at Rs 935 per kg, down Rs 9 or 1%.
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