Base Metals
LME markets were closed yesterday as UK markets remained shut due to Summer Bank holiday.
On the MCX, all the base metal prices apart from Copper traded higher owing to Rupee depreciation.
News for Copper
Freeport cuts production amidst falling Copper prices
Freeport-McMoRan became on the first major copper miners to announce its slashing production to cope with the depressed copper price.
Freeport plans to cut capital spending for 2016 by almost a third, reduce copper sales by about 150 million pounds per year in 2016 and 2017 and lower unit site production next year by 20%.
Arizona-based Freeport, which owns a 51 percent stake in the mine in northern Chile, became one of the first big global miners to announce it was slashing production because of slumping copper prices.
MCX copper prices fell by 0.1 percent and closed at Rs.341.8/kg despite Rupee depreciation.
Outlook
We expect LME Copper prices to trade lower as China's official Purchasing Managers' Index (PMI) stood at 3-year low at 49.7; thereby raising fears that efforts by the second biggest nation have not started bearing fruits yet.
Also, investors will be cautious ahead of US and UK manufacturing data. Besides, weakness in Asian equities will hurt the risk appetite, thereby hurting demand for the metal.
On the MCX, copper prices are expected to trade lower today in line with international trends.
Contributed by Angel Broking
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