Base metals hits lower circuit, melt 6%

Base metals hits lower circuit, melt 6%


New Delhi: Base metals futures hammered to hit lower circuit falling by 6% on the Multi Commodity Exchange on concerns over a global recession following spreading financial crisis.

Copper for February and November contracts crashed by six per cent each to hit lower circuit at Rs247.65 and Rs246 per kg, respectively, at MCX counter. The contracts recorded business turnover of 275 and 1,188 lots.

At London Metal Exchange, copper for three month delivery fell as much as 9% at $4,830 a tonne.

Strengthening of the US dollar against major currencies and softening crude oil in the global markets also continued to put base metal prices under pressure.

Copper remained hard-hit as hedge funds, which had been providing liquidity to the commodity, were unwinding their positions in the commodity space on global demand concerns.

“Growing concern about the slowing of global growth due to spreading financial crisis, will have adverse effect on the base metals demand, pulling metal prices down across the world", Karvy Comtrade head of Research G Harish told PTI.

“Melting equity markets too cast its shadow on the base metal prices," Harish added.