Copper steeply gains nearby 1% to Rs.460.75 at domestic market on more than expected result of German IFO Business Climate. At LME the metal gained by 0.5% to $7215 after the data release.
IFO Institute of Economic Research reported improvement in Business climate to 110.6, highest since 22 July, 11 from previous 109.5. Strong economic results of world developed economies are expected to support metal demand in long run.
At LME Copper inventory closing stock on 24th January was observed 0.327 mt lowest since October 2012. Today LME copper stock fell by 1575 tons.
Indonesia has put strict regulations and high export duties on export of copper and concentrates. That is likely to reduce copper stockpile in global market. At present global production of copper is 1.888 while its consumption is 1.932mt. According to Bloomberg Forecast the metal price is expected to reach at $7229 and $7174 in first and second quarter of the year respectively.
Strong results of US economy may further support the metal prices as U.S. is the second largest buyer of metals. This week U.S. GDP data will remain in prime focus that may determine price direction.