International Monetary Fund (IMF) warning that China growth rate will moderate to 8% is taken cautiously by the metals. The warning came on Wednesday with organization saying that the measures to cool the economy have impacted growth. LME metals remained very dull lacking even after some jaded news.
US new home sales data showed an unexpected drop in the month of June. Commerce department report showed that new home sales came in at a seasonally adjusted annual rate of 350000, this reflected an 8.4% drop from 382000 in May 2012.
IMF China team, Markus Rodlauer said that “China economy has now been slowing for six consecutive quarters. This started early last year when the government deliberately put in place policies to slow the economy, which had been growing very fast. Now, on top of that, has come the global slowdown mainly related to the euro crisis that has slowed down the economy more than expected and somewhat more than the authorities had themselves probably intended. GDP growth in the second quarter of 2012 came in at 7.6 percent, which was slightly better than expected. On current trends, we expect growth of around 8 percent this year.”
LME Copper settled at $ 7440 per tonne, compared to $ 7389 per tonne on Tuesday. The metal is showing some early weakness and is trading at $ 7422 per tonne in electronic markets. MCX Copper August expiry closed at Rs 421 per kg, up 0.42%.
LME Aluminium that ended on $ 1880 per tonne on Wednesday is seen trading at $ 1872 per tonne in early Asian trades. MCX Aluminium settled at Rs 104 per kg, compared to Rs 104.1 per kg on Wednesday.
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