Copper futures up on US demand hopes

Copper futures ended marginally higher on Saturday amid hopes that a pickup in US economic recovery may boost the near-term demand for the industrial metal, given that the nation is the world's second largest copper consumer.

Robust US industrial output data for February 2012 signaled that US economic activity is gathering steam, boosting the demand outlook for copper. Moreover, a smaller than expected rise in core consumer prices in the US last month also raised hopes that the Federal Reserve will continue with its low interest rate policy. Investors are betting that loose monetary conditions may spur the demand for industrial metals like copper. However, gains in the metal were curbed by concerns of weakening demand in China, the world's largest copper consumer. At the MCX, the price of the April 2012 contract rose as much as 0.09 per cent at Rs 432.55 per kg.

Copper futures, at the MCX, for the April 2012 contract, closed at Rs 432.20 per kg, up by 0.01 per cent, after opening at Rs 432.50, against a previous close of Rs 432.15. It touched an intra-day high of Rs 432.55.

Read more about: copper, futures
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