Copper rises in futures trade as overseas markets strengthen

New Delhi, Jun 12 (PTI) Copper prices rose Rs 11.50 to Rs 1,336.50 per kilogram in futures trade on Friday, driven by firm trends in the global markets.

On the Multi Commodity Exchange (MCX), the red metal for June delivery rose Rs 11.50, or 0.87 per cent, to Rs 1,336.50 per kg in a business turnover of 15,340 lots.

The July contract also advanced Rs 8.50, or 0.63 per cent, to Rs 1,351 per kg in 3,741 lots on the MCX.

Traders said improved sentiment across industrial metals and fresh positions built up by traders supported copper prices.

Meanwhile, the picture was mixed in the overseas markets. Copper on the London Metal Exchange (LME) climbed USD 176.90, or 1.31 per cent, to USD 13,666.18 per tonne. However, Comex copper futures for July delivery

dipped marginally at USD 6.37 per pound in New York.

According to brokerage firm Kotak Neo, base metals rallied broadly, with copper climbing above USD 13,660 per tonne as improving market sentiment outweighed recent macroeconomic concerns.

The rebound was driven primarily by renewed optimism surrounding a potential US-Iran agreement, after President Donald Trump indicated that a deal to end hostilities could be reached in the coming days, it added.

Analysts said while inflationary pressures and the possibility of tighter monetary policy remain key risks, expectations of additional US Federal Reserve tightening have moderated, providing support to copper prices.

“As a result, investor focus is gradually shifting back toward tightening supply conditions and the longer-term demand growth story, which continues to provide a constructive backdrop for the broader metals complex,” Kotak Neo said. PTI HG TRB