Copper on MCX settled down -0.93% at 372.55 as rising geopolitical tensions blunted appetite for risk and lifted the dollar, but prices were underpinned by tightening supply. LME copper dropped 1.5 percent to end at $5,747 a tonne, adding to small losses in the previous session, having broken support at its 100-day moving average at $5,800 a tonne.
Prices have faltered since shipments resumed from BHP Billiton's Escondida mine in Chile and since Freeport McMoRan Inc said it was awaiting final details on a temporary export permit in Indonesia, ending lengthy disruptions. The supply disruptions that we have seen were short-term dynamics and did not create real tightness in the market. The discount of cash LME copper to the three-month contract was $30.85 a tonne after closing on Friday at $35.25, the biggest discount since June 2013, indicating that supplies were adequate. LME copper stocks are at the lowest since early March, while ShFE copper stocks rose last week, but are down from near one-year highs reached a month ago. Hedge funds and money managers cut their net long position in U.S. copper futures for the first time in three weeks, data showed.
China's foreign exchange reserves rose slightly in March, figures from the People's Bank of China showed. Forex reserves totaled $3,009 billion at the end of March compared to $3,005 billion in February. Reserves increased for the second consecutive month. Technically market is under fresh selling as market has witnessed gain in open interest by 6.25% to settled at 16357 while prices down -3.5 rupees, now Copper is getting support at 370.7 and below same could see a test of 368.8 level, And resistance is now likely to be seen at 375.2, a move above could see prices testing 377.8.