Copper on MCX settled up 0.51% at 383.85 while traded in the range near one-week lows on news that operations at the world's top producing copper mine in Chile would resume. LME Copper ended 0.2 percent higher at $5,825 a tonne, after briefly touching a session low of $5,768. It hit the lowest since March 10 at $5,715 the previous session.
Traders are eyeing on the fresh update from the workers at BHP Billiton's Escondida mine agreed to go back to work on Saturday, ending a 43-day stoppage. The striking union and BHP Billiton are meeting to resume conversations. Also, the union received approval from its rank-and-file to invoke certain provisions of Chile’s labor code that would halt the current negotiation process and maintain the benefits of the current contract for 18 months.
BHP might feel some pressure at reaching a deal, whereas the workers have some incentive to delay as any talks will only result in a temporary contract with Chile’s new labor code taking effect in April. The new labor code is thought to be more union-friendly. While LME stock inflow has slowed, with only 1,700 tonnes being delivered into LME-sheds over the past six days, while outflow this week has averaged 5,858 tpd compared with 2,963 tpd so far in March and 4,008 tpd in February.
As the second quarter nears, traders are waiting to see if exchange stocks start to fall. Cancelled warrants on the LME stand at 142,100 tonnes, up from a low of 84,850 tonnes on February 23, so it does look as though the outflow could pick up. Now technically market getting support at 380.8 and below same could see a test of 377.6 level, And resistance is now likely to be seen at 385.8, a move above could see prices testing 387.6.