BASE METAL TIPS | Copper soars on supply cuts

BASE METAL TIPS | Copper futures surged by more than 1.5% during noon trade in the domestic market on Friday as investors and speculators cheered the announcements from leading copper producers who said that they would cut output as demand wanes in China, the world’s biggest copper consumer.

Freeport McMoRan Inc., the world’s biggest listed copper mining company has said that it will reduce copper supply by 350 million pounds; a bigger cut than the previously announced 250 million pounds.

All eyes are on key Chinese economic data for November including industrial output, retail sales and fixed-asset investment to be released on Saturday, which will offer further cues over the health of the world’s second biggest economy.

At the MCX, Copper futures for February 2016 agreement were trading at Rs.315.70 per kg, up by 1.71 per cent, after opening at Rs. 310.70, against the previous closing price of Rs. 310.40. It touched an intraday high of 316. (At 12:02 PM).