Copper at new high in futures trade on global cues

Buoyed by a firming trend in global markets and rising spot demand, copper futures prices rose by 0.50 per cent to trade at a new high of Rs 415.75 per kg.

At the Multi Commodity Exchange counter, copper delivery for April contract went up by Rs 2.05, or 0.50 per cent to trade at a new high of Rs 415.75 per kg, to clock a business turnover of six lots.

Similarly, the metal for delivery in February traded higher by Rs 2, or 0.48 per cent, to Rs 413.55 per kg, with a business turnover of six lots.

Analysts said rise in copper futures attributed to reports that the metal at the London Metal Exchange (LME) climbed to a record on concern that the US Federal Reserve may extend asset purchases to drive the economy.

The lower dollar boosted the appeal of commodities as an alternative investment.

Further, shrink in copper's stockpiles by 30 per cent to 352,250 tonnes this year, the lowest level since October 2009 at the LME's warehouses also influenced prices, they said.

Meanwhile, copper for the three-month delivery gained 0.6 per cent, to $9,066 a tonne on the LME, surpassing the previous peak of $9,044 on December 7.

While at Shanghai Futures Exchange, it added 3.6 per cent to 67,850 yuan ($10,193) a tonne, the highest price since November 12.