Copper prices at domestic market advanced at Rs.409.6 as China increased imports of copper products.
Yesterday Customs General Administration of China released trade balance data which has shown surplus of $7.7 billion dollars from the previous deficit of $23 billion.
China imports fell by 11.3% and exports declined by 6.6% in March. The world largest metal consumer imported 4,20,000 tons of unwrought copper and copper products compare to 3,80,000 tons in February.
Investors are concerned over the demand from China. They are expecting fall in demand at the country as the growth is slowing down.
At globe the metal production is expected to exceed the demand in this year which is likely to affect metal prices in coming months.
Today China Consumer Price Index increased at 2.4% from earlier 2.0% which may indirectly affect metal prices. Increase in inflation may reduce chances of stimulus by Government which backed metal prices earlier. Traders were expecting economic support from the central bank of China to boost slowing economic growth.
We may see copper prices down in coming weeks on demand concern. At present weak dollar may also support increased Copper prices.