Copper futures ease, await global cues

Print this page Posted on : 12-27-2007 by recycleinme.com

Copper futures eased on Wednesday after a 5-day rally in thin year-end dealing, as a holiday in London capped demand and analysts expected trading to be lackluster till January 2008 in the absence of key drivers.

The London Metal Exchange (LME) will remain shut until Thursday, Dec. 27, for Christmas holidays.

Volumes in February copper fell to around 6,700 lots of 1 tonne each from 45,000-60,000 lots early this month.

The February contract was down 0.16 per cent at Rs.274.90 per kg on the Multi Commodity Exchange of India (MCX).

ZINC, LEAD DROP

In other base metals, zinc and lead futures edged lower tracking copper and analysts said it was best to adopt a “wait and watch” policy.

Zinc for December delivery was quoted at Rs.95.35 a kg, down 0.42 per cent.

Lead for December delivery was down by 0.52 per cent at Rs.104.40, while lead January traded at Rs.105.25, down 0.52 per cent from the previous close.

“Lead futures are in contango which is a strong indication that the market is very bearish in the medium-to-long term. Though much movement is not expected now, prices will fall gradually,” Mr. Tejas Seth, an analyst with Motilal Oswal Commodities Pvt. Ltd said.

Source : Business Line