Copper prices on Monday were little changed after giving up earlier gains as concerns of a widening trade dispute between the United States and China roiled markets. Domestic Copper was tepid overall and is currently up by 0.14% at Rs 456.6 per kg.
The US Treasury Department is crafting rules that would block firms with at least 25 percent Chinese ownership from buying US companies. That reduced the momentum of a rally earlier on Mondays session after Chinas central bank said on Sunday it would cut the amount of cash that some banks must hold as reserves by 50 basis points to spur lending to smaller firms. Major equity indices are also trading with hefty losses in Europe and Crude oil prices have corrected after sharp gains on Friday. These cues have also weighed on the red metal.
Chiles Codelco, the worlds top copper miner, said late on Friday that workers unions at its small Salvador copper division had rejected an early wage deal from the company, pushing off further negotiations until later this year when its contract expires. Hedge funds and money managers trimmed their net-long positions in copper futures and options in the week to June 19, US Commodity Futures Trading Commission data showed on Friday.