Shanghai Copper most active February contract is trading with small gains under its belt on Wednesday. The February contract was seen trading at CNY 58000 per tonne up CNY 480 per tonne. The markets closed at CNY 57520 per tonne on Tuesday. The expectations of next few months of Copper were of a mild progression or stability.

The demand for Copper is generally slow in winters as the construction activity is slow and speculative demand is also less due to New Year and Christmas holidays. This is considered a dull period for all the commodities including Copper. The slowness in demand due to seasonality coupled with S&P warning for possible downgrade of 15 member of Eurozone countries will scare any heavy buying in the red metal.

In LME, the three month forwards Copper contract closed at USD 7792 per ton, down USD 80. The contract is trading up by 0.75% to USD 7850 per ton in early Wednesday trades. MCX Copper Feb contract is trading at INR 410.5 per kilogram up INR 2 or 0.5%. The contract is expected to test INR 411 to INR 412 as its Resistance from where profit booking can chip in with support levels of INR 408 to INR 407 per kilogram.

(Sourced from www.indiainfoline.com)