Copper Closes Higher On Strong Demand

Copper prices closed higher in the domestic market on Wednesday after France’s manufacturing PMI rose more-than-expected last month signaling weak sentiment in the region which raised the demand of the metal. In a report, Markit Economics said that French manufacturing PMI rose to a seasonally adjusted 50.4, from 48.3 in the preceding month. Sentiment improved further due to the decline in the copper stockpiles at the London Metal Exchange (LME) on account of the strong demand for the commodity. LME copper stocks fell by 2925 metric tonnes to 327175 metric tonnes as on September 23, 2015. However, gains were limited after figures showing the biggest contraction in China's manufacturing sector since the global financial crisis intensified fears that a slowdown in the world's second-largest economy will spread more widely which reduced the demand outlook for the metal in China, world’s largest consumer of copper. The preliminary Caixin/Markit China Manufacturing Purchasing Managers' Index (PMI) fell to 47.0 in September, the worst since March 2009. Copper prices may rise as investors now look ahead to upcoming US data which may determine the health of the world’s largest economy. At the MCX, Copper futures for November 2015 contract closed at Rs 340.15 per 1 kg, up by 0.18 per cent after opening at Rs 339.25 against the previous closing price of Rs 339.55. It touched the intra-day high of Rs 343.20 till the closing.

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