RTRS: India copper falls over 4 pct on dlr, demand worries
MUMBAI, Oct 21 (Reuters) - Indian copper futures fell over 4 percent on Tuesday as a firm dollar and concerns of waning demand from China and the U.S. weighed on sentiment, analysts said.
At 5.32 p.m., the benchmark November copper MCCX8 on the Multi Commodity Exchange of India (MCX) was down 4.16 percent at 228.3 rupees per kg.
"The outlook for industrial metals is bearish and lack of demand is the main reason," said Debjyoti Chatterjee, associate vice-president, MAPE Admisi Commodities Pvt Ltd.
Copper prices have fallen more than 25 percent in October due to the ongoing global financial crisis that raised concerns about slowing demand from the United States, the second largest consumer of the metal after China.
A fall in China's annual GDP growth to 9 percent in the third quarter from 10.1 percent in the second quarter, led to demand fears and hampered sentiment.
"Demand concerns from China had never really been wiped out and the slowing down of GDP has again reinforced it," said an analyst with a Delhi-based brokerage.
The dollar, which held near a 16-month high against a basket of currencies on Tuesday, also pressured prices down.
A stronger dollar makes dollar-denominated commodities expensive for holders of other currencies and caps demand.
Crucial support for copper was pegged at 223 rupees and immediate resistance seen at 231-232 rupees, said B.G. Manjunath Prasad, senior technical analyst, Way 2 Wealth Securities.
LEAD, ZINC
Lead, mainly used in car batteries, fell more than 4 percent on Tuesday as the slowdown in the auto sector due to the financial meltdown impacted prices of the metal, analysts said.
Lead prices have fallen more than 52 percent since its highs in early March 2008.
At 5.35 p.m., the benchmark lead for October delivery MLDV8 on the MCX was down 3.73 percent at 68.4 rupees per kg.
Zinc futures, which has been trading at all-time lows over the past several days, extended falls on Tuesday as the strong dollar, a supply surplus and lack of demand weighed on prices, analysts said.
In industry news, the world's secod largest zinc miner, OZ Minerals Ltd (OZL.AX: Quote, Profile, Research), said it was considering closing its Century mine in Australia due to constantly sliding zinc prices.
At 5.35 p.m., October zinc MZIV8 on the MCX was down 2.44 percent at 58.05 rupees a kg and the benchmark October nickel MNKV8 was up 0.78 percent at 528.2 rupees.
(Reporting by Nandita Bose; Editing by Sunil Nair)
