MUMBAI, Nov 20 (Reuters) - Indian copper futures continued their downtrend on Thursday as the global recession deepened and demand for industrial metals faded, analysts said.
Copper prices on the Multi Commodity Exchange of India (MCX) have fallen more than 53 percent since hitting record highs in July.
At 6.05 p.m., the benchmark November copper MCCX8 on the MCX was down 1.81 percent at 176.35 rupees per kg.
"There is no respite in sight for industrial metals," said Debjyoti Chatterjee, associate vice-president, MAPE Admisi Commodities Pvt Ltd.
Falling equity markets and subsequent worries about shrinking demand for industrial metals, rising stocks, and negative data from the U.S. weighed on sentiment.
Fading hopes of a U.S. bailout of the auto industry and data showing U.S. consumer prices dropped at a record pace in October also hit sentiment hard.
"Intraday the November benchmark copper should correct to 173 rupees," said Vamsi Krishna Kona, senior technical analyst with Karvy Comtrade Ltd.
Copper stocks on the London Metal Exchange rose 1,575 tonnes to 281,625 tonnes on Thursday.
In industry news Hindustan Copper Ltd (HCPR.BO: Quote, Profile, Research), India's third largest producer of the metal, saw a fall in output upto 20 percent and sees margins pressured by falling ore prices due to slowing global demand. [nDEL105580]
Reflecting poor demand Chile's Codelco, the world's top copper producer, has offered term premiums for refined copper to China at $75 per tonne in 2009, down 32 percent from 2008. Codelco cut premiums for buyers in Korea and Japan by between 35 and 36 percent respectively. [ID:nHKG349982]
Selling in copper is recommended at 177-178 rupees with a stop loss of 181 rupees and a target of 173 rupees, Karvy's Krishna Kona said.
ALUMINIUM
Aluminium prices fell after recording a huge surge in stocks. Stocks on the LME rose 20,850 tonnes to 1,722,375 tonnes, the highest since December 1994.
At 6.11 p.m., benchmark November aluminium MANX8 fell 2.73 percent to 89.15 rupees per kg.
NICKEL, LEAD, ZINC
Nickel, lead and zinc prices fell in tandem with copper, as a global demand meltdown also hurt demand for these metals.
At 6.12 p.m., benchmark November nickel MNKX8 was down 2.72 percent at 503.4 rupees per kg.
Benchmark November zinc MZIX8 was down 2.05 percent at 57.45 rupees per kg and benchmark November lead MLDX8 was down 2.19 percent at 60.25 rupees per kg from its previous close. (Reporting by Nandita Bose; Editing by Sunil Nair)
