Base Metals Preview: MCX Copper Settles Just Above Rs 433

Indian Copper settled the trading at Rs 433.7 per kg, up 1.53%. The prices of Copper tested a high of Rs 441 per kg and a low of Rs 428.6 per kg. Meanwhile, Chinese imports of refined copper continued its long term decline in 2018 after falling by 5.7% last year, but on the plus side concentrate shipments have stayed strong. Chinas copper concentrate imports are on track to top the record levels of 2017 of 17.3m tonnes, boosted by a ban on most scrap imports.

As per the estimates from Credit rating agency ICRA, if domestic demand for copper grows at the current rate of 7-8 percent, the market is likely to turn into a deficit in the next couple of years.Supply bottlenecks in 2017 had resulted in a sharp increase in international non-ferrous metal prices, which strengthened by 24-35 percent during the year.