The prices of Copper traded sideways in domestic markets. April expiry futures of Copper were swinging between gains and losses and were last seen at Rs 442.75 per kg, unchanged from last night.
Copper undertone is turning weak after the last session where the prices were sold from its resistances of Rs 444 per kg. The problems emerging from China are mostly to blame for the intrinsic fear among the traders. Last night, three-month copper on the London Metal Exchange ended at $7026 a tonne, its lowest level since February 5, and down from a close of $7064.50 on Tuesday.
International markets saw copper slipping to three week low. The negative vibes from China is turning the metal on its head. Chinese banks are going strict on the property developers and have stopped the lending. China accounts for more than 40 percent of global consumption of copper.
In China, Industrial Bank and other banks may have stopped extending some loans to property developers and tightened lending to other property-related sectors, such as steel, cement and construction.
In other news, Indian exchanges have been in a spot of bother with the value of metals showing a sharp decline of 43% between cumulative period of April-February 2013-14. The value has been dipping from last few months. Problems of transparency in Indian exchanges and negative Indian market sentiments have been the culprit behind the fall.
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