MCX COPPER LIVE NEWS ( MAR 13)

COPPER FALTERS FOR FIRST TIME IN FOUR SESSIONS

 Mar-13-2012

Red metal sheds 0.5% following Chinese data

Copper prices ended lower on Monday, 12 March 2012 at Comex. Copper fell for the first time in four days on Monday, pressured by an early rally in the dollar versus the euro and by worries global growth may be slowing, which could hurt demand for industrial metals. China, which accounts for 40% of the world's copper demand, posted its largest trade deficit in at least a decade. That spurred worries of slower growth in the world's second largest economy.

Copper for May delivery ended lower by 2.1 cents (0.5%) at $3.84 a pound at Comex on Monday. Last week, prices shed about 1%. For February 2012, copper had gained 2.2%.

Red metal prices for three-month-delivery at LME fell $45 (0.5%) to $8,490 a metric ton on Monday.

Investors digested news on Monday that China posted a trade deficit of $31.48 billion last month, a reversal from a $27.28 billion surplus generated in January, 2012. China is critical for gauging gold demand and the discouraging data were magnified in the absence of other macroeconomic data. Market had widely expected the trade balance to swing to a deficit, following a temporary disruption during the Lunar New Year holiday in January. But the size of February's deficit came in well beyond the range of estimates.

China's negative trade balance was attributed to seasonal distortions, as well as weakening demand for the country's exports. China's exports rose less than expected while imports climbed more than anticipated with the country importing record volumes of crude oil during the month.

In the currency market on Monday, the Dollar Index, which weighs the strength of dollar against basket of six other currencies fell by almost 0.2% after staying weak the entire day.

Volumes were light at the start of the week as investors assessed mixed February trade figures from top consumer China and paused in front of Tuesday's U.S. Federal Reserve policy meeting, which should give some clues about the course of U.S monetary policy going ahead.

For the year 2011, copper shed 23% following a 30% increase in 2010 and a 140% jump in 2009, boosted by surging demand from China's manufacturers. China accounts for 40% of the world's refined copper consumption.

Among other traded metals at LME on Monday, lead in London rose 0.8% at $2,138 a ton and nickel closed lower by 0.2% at $19,260 a ton. Aluminum closed lower by 0.5% at $2,228.5 a ton, and zinc closed higher by 1% at $2,090.5 a ton.

At the MCX, copper prices for April delivery ended higher by Rs 0.9 (0.21%) at Rs 427.4/Kg. Prices rose to a high of Rs 428.4/Kg and fell to a low of Rs 425.25/Kg. www.goldennifty.com