MUMBAI (Commodity Online): Copper stocks traded firm on the Bombay Stock Exchange as the Chinese copper imports showed significant rise over last month.

Chinese copper imports in September increased 22% month-on-month from August to 399,052 ton. However, volumes in the month of July and August had seen import volumes decline.

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The copper price reacted positively to the news but was capped by further gains in LME warehouse stocks, which suggests that demand outside of China is still very weak. London copper rose more than 1% on Monday, reversing from losses in the previous session.

Copper stocks on the bourses traded with positive trend in the afternoon trading session today. Hindustan Copper Ltd traded at Rs.270 up by close to 1%, while Vedanta Group major, Sterlite Industries Ltd traded at Rs.809.6 up by 0.5% on the BSE today.

Birla group company and metals miner, Hindalco Industries Ltd traded at Rs.126.7 up by 0.7% in the afternoon trading session.

Copper prices on the Indian commexes traded up at Rs.307.25 per kg for MCX November contract.

LME warehouse stocks have now risen by 39% since their low in mid-July, to more than 357,000t as of 19th October. In contrast Shanghai stocks have dropped to 100,217t from 104,248t in mid- September. Experts do not expect to see an appreciable pick-up in OECD copper demand in Q4 2009, and therefore Chinese demand will be crucial in determining price strength in the short-term.

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