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MTECHTIPS:-MCX Copper Has Depleted By 22% So Far in August 2015

MTECHTIPS:-MCX Copper Has Depleted By 22% So Far in August 2015

The overall picture for Copper is bearish and the prices have been unable to see any major recovery. Indian Copper prices have depleted by 22% averaging at Rs 332.3 per kg in August 2015 so far compared to Rs 425.97 per kg in August 2014 last year. On the monthly basis the correction has been 5% in domestic prices while Copper has declined by 8.8% since January 2015 when the prices were Rs 364.36 per kg. Meanwhile, London Metal Exchange (LME) Copper has corrected 27% since last year. The prices have corrected to $ 5128 per tonne in August 2015 from $ 7000 per tonne in August 2014, down 26%. The continuous onslaught by speculators and issues pertaining to Chinese demand resulted in Copper declining further down in the month of August 2015. After the market panicked by the recent devaluation of Chinese currency, Copper prices were not able to recover. China consumes more than 42% of Copper in the world; the move of devaluation of Chinese currency is expected to bring heavy Copper supplies into the markets that will shave the demand. The declines were a result of Chinese fear that economy is going into doldrums. Chinese demand is also facing seasonal issues that is refraining any positive calls on the metal. China allowed the yuan to fall sharply in August to hit the lowest level since October 2012. The steep decline stoked concerns that China may allow the yuan to continue to depreciate, fueling fears over a currency war, as Beijing aims to make the nation’s ailing exports more competitive on the global stage.

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