MCX Copper prices closed at Indian Rs 402.25, up 1.6 percent. Technical charts suggest that further rally can take metal towards INR 410 per kg.
Earlier in this month, the ICSG (International Copper Study Group) has released prelude data for the month of August this year, as per which copper production and usage data points to an obvious production surplus of about 154,000 metric tonnes during the month.
The world copper mine production has grown by about 730,000 tn, (5.8 percent) during the initial 8-month period of 2016, while concentrate production was up by 7.5 percent during the period.
As per mining source expectation, this week Indonesia will cut the royalty charged on sales of processed and refined nickel to 2%, part of a revision of govt rules on non-tax revenue from the coal and minerals sector. The revision is required to encourage more miners to develop smelter.