Copper prices CMCU3 have extended their sharp recovery last week from the March lockdown lows of $4,371 to $7,973.5 a tonne, the highest since February 2013, buoyed by China’s solid demand and hefty investments by speculators amid monetary policy easing. views the current prices do not reflect fundamentals and the rally has been overdone.
“The reasonable trading range next year will be between $6,500 and $7,000 a tonne,” Kojima said.
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In November, top copper producer Codelco agreed its 2021 term premiums with a major Chinese buyer at $88 a tonne, keeping steady at this year’s level. premium is paid on top of London Metal Exchange copper prices for physical delivery of copper cathodes into China, the world’s biggest copper consumer, and is a widely watched industry benchmark.
Kojima said that PPC wants to set its own 2021 term premiums to China also in line with this year’s level, but declined to give a specific price.
Metal stocks tumbled on Thursday.At around 12.40 pm, the Nifty Metal was trading at 3,254.75 down 17.00 points or 0.52%.The index has also touched a low of 3,250.70 in early deals.
Sectorial giants SAIL and Coal India were under major selling pressure. Tata Steel, Jindal Steel, Hindalco and JSW Steel also traded in the red.
However, Hindustan Copper continued its winning streak to trade 10% higher. The company stock has been in upbeat this week and Thursday was no diffetent despite bearish tone of the sector.
NMDC and Midhani gained over 1% while Welspun Corp and Ratnamani were also on the upside.
On the index, SAIL was the biggest loser, trading 2.91% lower. National Aluminium slumped 1.58% while Coal India fell to 1.31%.
BSE Sensex was trading at 46,856.13 up 189.67 points or 0.41% and Nifty 50 at 13,735.80 up 53.10 points or 0.39%.
