India copper edges lower as dismal U.S. data weighs

Fri Jul 3, 2009 3:20pm IST

MUMBAI, July 3 (Reuters) - India copper futures edged lower on Friday afternoon on renewed concerns of a speedy economic recovery after weaker-than-expected U.S. jobs data, analysts said.

Rising inventories in Shanghai and London also pressured the red metal, they added.

The most active August copper contract MCCQ9 was 1.5 percent lower at 241.20 rupees per kg at 3:12 p.m., after hitting a low of 240.7 rupees earlier.

The U.S. lost more jobs in June than expected, while the unemployment rate hit 9.5 percent, the highest in nearly 26 years, dimming hopes for a rapid economic recovery. [ID:nN02549309]

Copper stocks in London Metal Exchange rose by 4,050 tonnes to 268,275 tonnes, while copper stocks in Shanghai stocks also rose by 7 percent to 59,980 tonnes. See [ID:nBJD000933]

Traders were disappointed after the U.S. jobs report, which raised concerns about demand, said Kapil Gandhi of STCI Commodities.

"We expect copper to trade with negative bias for trading day in range of 236-246," added Gandhi.

"We are expecting the level of 232 rupees in the next 4-5 trading sessions," said Amrut Deshmukh, senior technical analyst with Way 2 Wealth Securities.

In other base metals, July zinc MZIN9 was 0.93 percent lower 74.60 rupees per kg, while lead for July delivery MLDN9 was 1.16 percent lower at 80.60 rupees per kg.