India copper falls but record aluminium supports

MUMBAI, July 7 (Reuters) - Indian copper traded weak on a strong dollar on Monday, but record high aluminium prices capped losses, analysts said. At 6.40 p.m., the benchmark August copper MCCQ8 on the Multi Commodity Exchange of India (MCX) was down 0.71 percent at 365.65 rupees per kg. "Copper is down because of the dollar but aluminium which has hit a two-year high is bringing in some fresh buying into the base metals complex," said an analyst with Motilal Oswal. The dollar on Monday hit a one-and-a-half week high on speculation that comments from G8 officials could push oil prices down. A strengthening dollar makes dollar-denominated commodities expensive for holders of other currencies and caps demand. The ongoing lack of demand from the world's largest metal consumer, China, also pressured prices of the red metal. High international prices of the metal have stopped price-sensitive Chinese buyers from entering the market. Copper inventories on the London Metal Exchange were down 500 tonnes to 122,075 tonnes on day, but failed to underpin the fall owing to the strong dollar. ZINC, LEAD Zinc futures rose on Monday on bargain buying, analysts said. Source: Reuters