ZOID RESEARCH 12- MAY-2014 :COPPER

As of Friday close, LME copper prices are seen trading at $6729 marginal change from its previous close. The most of active august contract at SHFE traded lower by 200 Yuan/MT from 47270 Yuan/MT to 47080 Yuan/MT. Likewise, copper July contract traded in COMEX is seen trading at $3.065/lb, no major change from its previous close. Looking at the copper price performance in the global market, the domestic copper prices remained mostly muted at Rs. 409.50 down by Rs. 2 from its previous close. We have been seeing the commodity is enmeshed with multiple factors. During the week we saw the Chinese manufacturing numbers came inferior to its expectations while the global equity markets remained muted. Also, the commodity is highly pruned to Chinese economic situations. Copper is very heavily exposed to the Chinese property market with over 60% of consumption coming from property and property-related sectors. So Chinese economic situations remaining at a frail is causing a problem for the commodity to trade down.

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