The partially convertible rupee, which plays an important role in determining the prices of dollar-denominated metals, fell on Friday to close at 54.47, down 0.6 percent from Thursday. Traders expect copper demand to rise next week as sales of heating appliances such as geysers, particularly in northern India, are likely to rise with the progress of the winter.
"Rising construction activity and higher demand for heating appliances is likely to boost demand for the red metal," said Praveen Agrawal, a member of the Bombay Metal Exchange. On Friday, the key November copper contract on India's Multi Commodity Exchange (MCX) was trading up 0.39 percent at 442.6 rupees at 1300 GMT, tracking a weak rupee. Three-month copper on the London Metal Exchange was trading marginally down at $7997 per tonne from Thursday's close.
In the Mumbai spot market, copper fell 5.9 rupees to 437.6 rupees per kg from Thursday's close. Demand for Zinc, used for galvanising steel, remains buoyant as construction picks up. India, the world's third-largest producer of zinc, has the capacity to produce around 1 million tonnes annually. Hindustan Zinc Ltd, controlled by Vedanta Resources, accounts for around 82 percent of the total production. The January zinc contract was trading down 0.23 percent at 109.7 rupees a kg. Zinc in the local spot market fell 0.9 rupees to 108.8 rupees a kg from Thursday's close.
An expected fall in automobile sales in December could drag down batteries sales and cut demand for lead. Added pressure could come from a decline in demand for power back-up devices, which use batteries, as cold weather sets in during December, traders said. India's automobile sales typically fall month-on-month in December after strong demand in November, when a clutch of festivals prompts gift-giving. Lead spot prices fell by 1.1 rupees to 143.3 rupees a kg on Thursday from 144.4 rupees on Monday, according to HZL's website. HZL revises lead prices twice a week, on Monday and Thursday. The November lead futures contract on the MCX was trading down 0.79 percent at 119.6 rupees a kg from the previous close on Thursday.