Copper on MCX settled down -1.38% at 385.35 as trader booked there long position on worries about demand after G20 finance ministers dropped a pledge to keep global trade free and open weighed on prices of industrial metals overall. Also worries about demand from top consumer China were reinforced by expectations of ample supplies and higher inventories in exchange-monitored warehouses.
Sentiments also dropped after the update that the ICSG said Monday the global copper market deficit had fallen back to about 50000 t in December, following a deficit of about 90000 t in November. According to the group’s latest copper bulletin, world mine output is estimated to have increased by around 5%, or one-million tonnes, with concentrate output increasing by 7% and solvent extraction-electrowinning declining by 2%.
The increase in world mine output in 2016 was mainly attributable to a 38% rise in Peruvian concentrate output that benefitted from new and expanded capacity brought on stream in the last two years, and a recovery in production levels in Canada, Indonesia and the US, and expanded capacity in Mexico.
However overall growth was partially offset by a 3.8% decline in production in Chile, and a 4.5% decline in the Democratic Republic of Congo, where output is being constrained by temporary production cuts. Now market players will focus on a handful of Fed speakers in the week ahead, including Chair Janet Yellen on Thursday, as they look for more clues on the timing of the next U.S. rate hike. Technically market is getting support at 382.6 and below same could see a test of 379.9 level, And resistance is now likely to be seen at 389.3, a move above could see prices testing 393.3.