FUNDAMENTAL REPORT AND OUTLOOK ON COPPER


Copper fell to its lowest levels in almost four


on concerns that the deepening global recession


will reduce metal demand through next year .


Copper prices have plunged 55 % this year heading


for a record annual decline.


Climbing copper inventories signal sagging demand.


Stock piles monitored by the LME added 1% to 321900


metric tonnes today.


Copper demand will lag behing production next year


and the market will have a surplus of 144000 tons


of metal. Still copper pared declines today as the


dollar plunged against the euro spurring demand


from investors seeking alternative assets.




Copper for February expiry under the MCX India might


see support at 146 levels , while the resistence for


the same is seen at Rs 152 levels.


OUTLOOK


Copper might continue to trade lower as the economic


picture looms large over the industrial and construction


development.


There is no doubt that the outlook for metals demand over


the next few quarters is grim.


Copper is the metal we would identify as having the


furthest downside potential from current levels.