Copper on MCX settled down -0.81% at 380.75 with striking union members agreeing to return to work at the world's top copper mine, in Chile. In the short term, investors were jittery on prospects that President Donald Trump's healthcare bill would not pass, suggesting he may not be able to muster the backing needed to push through fiscal measures central to the government's economic agenda. At the moment there is no fear of a lack of supply even though we have massive supply side issues across the board.
The strike at Chile's Escondida, the world's largest copper mine, is ending after workers decided to invoke a rarely used legal provision that allows them to extend their old contract, the union said. China's refined metals imports were sharply lower in February, by 29 pct on the year for copper, also spooking the market over the strength of demand. Freeport-McMoRan Inc said Thursday that a nearly two-week strike has not materially impacted production levels at its Cerro Verde copper mine in Peru, the country's biggest, although the union said output has been cut in half.
Confidence among Japanese manufacturers rose for a seventh straight month in March to a three-year high, while the service sector's mood held steady, highlighting an export-led economic recovery. Copper stocks in LME approved warehouses have shot up 63 percent since March 2 to 312,525 tonnes while on warrant inventories have doubled.
Technically market is under fresh selling as market has witnessed gain in open interest by 5.81% to settled at 12905 while prices down -3.1 rupees, now Copper is getting support at 378.8 and below same could see a test of 376.7 level, And resistance is now likely to be seen at 383.2, a move above could see prices testing 385.5.