copper prices rallied during late morning trade

Against the backdrop of concerns over supply reductions, copper prices rallied during late morning trade in the domestic market on Wednesday but a fourth straight drop in shares in China loomed large on the industrial metal’s demand prospects from the world’s biggest metals consumer, trimming gains in Copper.The world’s biggest publicly traded copper mining firm, Freeport-McMoRan Inc indicated that it will review plans to trim production in response to a price slump while TD Securities Inc. warned that power shortages in Zambia may prompt output cuts in the second half of the year.Meanwhile, China’s benchmark index, the Shanghai Composite which suffered the biggest single day drop in eight years on Monday and fell a further 1.7 per cent on Tuesday, was down over 1 per cent on Wednesday, a sign that government share purchases to stem the rot in equities have failed to boost sentiment.At the MCX, Copper futures for August 2015 contract is trading at Rs 342.20 per 1 kg, up by 0.23 per cent after opening at Rs 342.30, against the previous closing price of Rs 341.40. It touched the intra-day high of Rs 343.90. (At 11:09 AM).

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