Copper prices are still rolling forward thanks to some build up of long positions on a thinly traded volume day. The markets opened at Rs 429.9 per kg on Thursday and consolidated the momentum to test a high of Rs 435.5 per kg, so far. The benchmark expiry contract of Copper is trading at Rs 434.2 per kg, up Rs 5 as of now.
Deficit in the world markets and declining mine capacity production has helped Copper in 2010. So far the LME inventories have declined by 26% in 2010. The prices on LME have appreciated by 25% during this period. Today, the LME inventories increased by 5050 tonnes to 376000 tonnes, but that were not able to imbibe any buying sentiments from the markets.
Rising yuan and higher production of Copper in China provided further impetus in the markets. The Chinese currency yuan, also known as the Renminbi (RMB), strengthened to a new record high at 6.6229 per U.S. dollar Thursday.
China Ministry of Industry and information Technology showed that the non-ferrous metal production jumped significantly in Jan-Nov 2010.The non-ferrous metals production for Jan-Nov 2010 was 28.75 million tonnes, up 21.4%. Among the total non-ferrous metals production, Copper production stood at 4.184 million tonnes during Jan-Nov 2010, up 10.7%.
Meanwhile, COMEX Copper March futures are trading at $ 4.3580 per pound, up 0.4 cents. In Shanghai, the prices crossed 70000-yuan mark convincingly and were at 70820 yuan per tonne, up 1680 yuan at the end of the day.
