Copper on MCX settled down -1.67% at 391.85 prices has seen the lowest prices in a week, despite interruptions in supplies at major mines around the world. Also pressure seen as Speculators cut their bullish position in Comex copper futures and options by 7,851 lots to 70,660 lots, U.S. Commodity Futures Trading Commission data showed on Friday. Yesterday LME Copper closed down by 1 percent lower at $5,858 tonne, its lowest since Feb. 24.
For this week sentiments will remain weak and bearish as LME copper stocks surged by 38,825 tonnes, data showed on Monday. Meanwhile copper mine Escondida, the largest of its kind in the world, located in Chile, is still under strong tensions with a strike that escalated when workers blocked their access routes. The Chilean government recently lamented the persistence of the strike, which caused a drop in the country's copper production by 12 percent in February.
Escondida, controlled by Anglo-Australian firm BHP Billiton, is strategically important because it has a direct impact on the international market. Mining Minister Aurora Williams detailed that the mine has stopped producing between 95 thousand and 100 thousand tons of copper to date. Likewise, the minister was pessimistic before an acute controversy between the union and the employer of Escondida, mainly due to salary issues.
In the week ahead, markets will be looking ahead to Friday’s U.S. jobs report, which could seal the deal for a Fed rate hike later this month. Investors will also be looking to the outcome of Thursday’s European Central Bank meeting for fresh cues on the future direction of its stimulus program. Technically market is getting support at 389.1 and below same could see a test of 386.3 level, And resistance is now likely to be seen at 396.3, a move above could see prices testing 400.7.