Copper slumps more than 8% to 20-mnth low

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Indian copper futures dipped close to 9% and traded at a 20-month low on Friday, while lead sank more than 7% as investors went fleeing to safer assets amid a global financial meltdown. India copper prices have fallen more than 21% since the start of October as tension in the financial markets continue to mount. Globally collapsing equity markets have increased anxiety about global growth and in turn demand for industrial metals.

At 3.49 pm, the benchmark November copper on the Multi Commodity Exchange of India (MCX) was down 7.32% at Rs 242.55 per kg. “The overall global economic situation is weak and we recommend traders to remain cautious,” said Reena Walia, an analyst with Angel Broking Ltd. The red metal was further pressured down by rising inventories both on the London Metal Exchange (LME) and the Shanghai Futures Exchange.

LME copper stocks were up by 100 tonne to 209,400 tonne on Friday and Shanghai warehouse copper rose 59% to 25,681 tonne in two weeks to Thursday, exchange data showed. “Immediate support for benchmark copper is seen at Rs 236 rupees and resistance at Rs 247,” said a technical analyst with a Delhi-based brokerage.

Nickel futures slid down more than 5% and traded at a 33-month low as global financial worries coupled with lack of demand for the metal weighed on prices. At 3.50 pm, benchmark nickel was down 4.73% at Rs 610.5. Lead futures fell more than 7% and at 3.51 pm benchmark lead was down 7.68% at Rs 74.55.