MCX BASE METAL TIPS | Copper prices closed lower in the Asian market on Monday as investors and speculators resorted to a cautious stance ahead of the outcome of the United State Fed Reserve’s two-day monetary policy meet on Wednesday, in which a hike in interest rates, the first since 2006, is at most a certainty, boosting the dollar, and dimming the demand for dollar-denominated commodities such as copper. China’s industrial result, retail sales and fixed-asset investment numbers for November, came in better-than-assumed, easing concerns over a slowdown in the world’s second biggest economy, brightening the demand outlook for copper, trimming losses in the metal. China’s industrial output climbed 6.2 per cent, year on year in Nov 2015, topping estimates for a 5.7% annual gain, while retail sales rose 11.2 per cent, the biggest advance this year, and fixed-asset investment for the 1st eleven months of 2015 increased 10.2 per cent. However, losses were limited due to the decline in the copper stockpiles at the London Metal Exchange (LME) on account of the strong demand for the commodity. LME copper stocks fell by 475 metric tonnes to 232200 metric tonnes as on December 14, 2014. Copper prices may rise as investors now look ahead to upcoming US data which may determine the health of the world’s biggest economy. At the MCX, Copper futures for February 2016 contract closed at Rs 317.65 per 1 kg, down by 0.35 per cent after opening at Rs 319.30 against the previous closing price of Rs 318.75. It touched the intra-day low of Rs 314.95 till the closing.
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