The global economic meltdown and market crash have caught up with copper prices. Copper prices continue to plunge and short positions have build up in the commodity contracts across variouis global commodity exchanges.
The global demand slump and rising inventories are making copper prices bleed session after session. Copper prices in India's MCX futures market have so far lost Rs 2.50 to trade at Rs 191.55 per kg. The prices were at Rs 241 levels on 20th Oct 2008, marking a fall of more than 20%. It doesn’t look to find supports from here and the short term view of copper is quite negative.
LME Inventories data are now hovering at 211975 tonnes, it saw a jump of 2725 tonnes to reach the current levels. However the Shanghai inventories data registered a fall of 3737 tonnes during the week to 31053 tonnes.
Copper prices have tumbled to the lowest in almost three years as a global economic slump reduces consumption of the metal used in pipes and wires. The prices have been on their way to abysmal as the demand outlook continues to fade.
Major emerging markets are facing recessionary concerns along with developed world. The demand outlook is puny because of the fact that the countries like US and UK along with Germany, France etc are facing serious liquidity concerns.
