RTRS: India base metals slide, copper slips past 3 pct
MUMBAI, Oct 15 (Reuters) - Indian copper futures slipped more than 3 percent on Wednesday as fears of a global economic slowdown raised questions about the demand outlook for industrial metals.
Industrial metals reversed their gains on Wednesday, after witnessing a relief rally in the previous two sessions, when central banks world over pumped in money to shore up the global financial sector.
Investor fears about a global recession or a deepening credit crisis grew post comments by Fed officials on Tuesday about risks to the U.S. economy from the global financial turmoil.
At 4.18 p.m., the benchmark November copper MCCX8 on the Multi Commodity Exchange of India (MCX) was down 2.96 percent at 249.4 rupees per kg. It was mostly down more than 3 percent this session.
"The relief rally was expected to be short-lived. Demand is what everyone is looking at and that is surely taking a hit because of the global financial crisis," said Debjyoti Chatterjee, associate vice-president, MAPE Admisi Commodities.
Expectations of a weaker global demand for metals was also reinforced after the world's largest copper producer Codelco said the premium for refined copper in Europe will be lower at around $80 a tonne in 2009. [ID:nLF42496]
Global miner Rio Tinto's (RIO.AX: Quote, Profile, Research) (RIO.L: Quote, Profile, Research) warning of slowing Chinese demand for commodities on Wednesday also weighed on prices.
Crucial support for copper is seen at 245 rupees and resistance is pegged at 256.9 rupees, said Reena Walia, an analyst with Angel Broking Ltd.
Zinc prices, which traded below or close to its production cost, fell on Wednesday. At 4.23 p.m., benchmark zinc MZIV8 on the MCX was down 1.11 percent at 66.8 rupees a kg .
Lead and nickel prices also slipped on the back of demand worries as recession fears grew.
At 4.23 p.m., the benchmark October lead MLDV8 on the MCX was down 2.44 percent at 75.9 rupees per kg and benchmark October nickel MNKV8 was down 5.01 percent at 592 rupees.
(Reporting by Nandita Bose; Editing by Prem Udayabhanu)
