Copper On MCX Settled Down

Copper on MCX settled down -0.47% at 378.95 after update as workers at the world’s largest copper mine, BHP Billiton’s Escondida in Chile, ended their strike. On copper there is so much uncertainty, Escondida, Indonesia, the Philippines, and on the demand side it seems China isn't doing too badly, especially given upbeat global sentiment and improving growth in advanced economies. New U.S. single-family home sales jumped to a seven-month high in February, suggesting the housing market recovery was gaining momentum despite higher prices and rising mortgage rates.

The union at Chile's Escondida copper mine has ended its 43-day strike by invoking a legal provision to extend workers' old contract by 18 months, leaving owner BHP Billiton in a weaker position for future negotiations. Freeport-McMoRan’s Grasberg mine also restarted after over a month of strike. Its copper concentrate output is expected to grow steadily. 

SHFE copper stocks saw a large 12,694 draw from warehouses in the latest week, bringing stocks down to around 312,500 tonnes, the lowest since the start of the month. Hedge funds and money managers boosted their bullish position in copper futures and options by 2,231 lots to 54,680 in the week to March 21, U.S. Commodity Futures Trading Commission data showed.

China's refined metals imports were sharply lower in February, by 29 pct on the year for copper to 66 pct, also spooking the market over the strength of demand. Technically market is under long liquidation as market has witnessed drop in open interest by -0.46% to settled at 12845 while prices down -1.8 rupees, now Copper is getting support at 372.5 and below same could see a test of 366 level, And resistance is now likely to be seen at 383.1, a move above could see prices testing 387.2.

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Suhani Verma

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