Apart from this, tightening of monetary policy by China also reduced the copper imports. China imported 595,963 tons of copper in the first quarter which is 21 per cent less than the same period a year ago, according to customs agency figures.
Copper output in China is expected to rise 9.4 per cent to a record this year owing to expansion in production capacity and increase in demand, according to the China Non-ferrous Metal Industry Association. Refined copper production reached an all time high of 470,600 tons in March 2011.
At MCX, copper future for June contract is trading at Rs. 418.20 per kg, down by 1.23%, after opening at Rs. 424.85 against the previous closing price of Rs. 423.40 per kg. It touched the intra-day low of Rs. 417.45 till the trading. (At 05:41 PM today).
At COMEX, copper for July delivery traded at US$4.2265 per pound, down by 0.82%, after opening at US$4.2625 against the previous closing price of US$4.2615. It touched the intra-day low of US$4.2140 with a business volume of 5,468 lots till the electronic trading. (At 05:35 PM today).
Moreover, the concern over increasing interest rates by China to curb inflation also put a downward pressure on copper futures prices.