Copper On MCX Settled Down -1.02% At 358.55


Copper on MCX settled down -1.02% at 358.55 fell to five-months lows on rising inventories which increased worries about an economic slowdown in China, the world's largest consumer of the metal. Also manufacturing PMI data from China this week has come below expectations, raising concerns about Chinese demand. Inventories in LME warehouses rose nearly 33,000 tonnes on Wednesday, exchange data showed, bringing this week's increase to 64,000 tonnes, or 25 percent. That followed data this week showing that U.S. factory activity slowed in April while growth in China's manufacturing sector slowed more than expected. Also a report on Thursday showed that new orders for goods manufactured in the United States rose for a fourth month in March, but by less than expected. Meanwhile LME copper closed 1 percent down at $5,543 a tonne, having touched $5,494, its lowest since Jan. 4. Prices registered their biggest one-day drop since Sept. 2015 in the previous session, falling 3.5 percent.

The base metals have been under pressure recently, and on Wednesday the complex saw a big sell-off. Although they have steadied today they failed to gain any significant support from the US Federal Reserve’s statement that the US economy’s Q1 weakness was “Transitory”. Instead, the metals remain pressured by the recent batch of negative Chinese economic data which is denting future demand expectations. Technically market is under long liquidation as market has witnessed drop in open interest by -2.73% to settled at 17378 while prices down -3.7 rupees, now Copper is getting support at 355.2 and below same could see a test of 351.9 level, And resistance is now likely to be seen at 362.4, a move above could see prices testing 366.3. 
 
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Suhani Verma

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