Copper On MCX Settled Up 0.69% At 359.1


Copper on MCX settled up 0.69% at 359.1 as some investors looked for bargains after sharp overnight losses on fresh signs of a slowdown in Chinese demand. Daily LME data showed copper stocks down 8,725 tonnes at 342,825. However, they remain near their highest since last October, fuelling pessimism over demand following hefty inflows in LME warehouses last week. BHP Billiton, said it had started a sales process to potentially divest its Cerro Colorado copper mine in Chile. China’s refined copper cathode output is expected to slow further in 2017. New capacities coming online decreased in 2016, and new capacities in 2017 will be mainly commissioned in the second half of the year, explaining the reason behind such a prediction. China's April producer price inflation cooled more than expected as iron ore and coal prices tumbled further, pressured by fears that domestic demand will not be strong enough to absorb surging supplies of steel.

A renaissance in China's steel industry has been a major driver of the world's second-largest economy in recent quarters, helping generate the strongest profit growth in years and adding to a reflationary pulse across the global manufacturing sector. The soft data, combined with slightly slower growth in manufacturing activity, reinforces analysts' views that China's economic expansion remains solid but is starting to moderate after a surprisingly strong start to the year. Technically market is under short covering as market has witnessed drop in open interest by -5.25% to settled at 16799 while prices up 2.45 rupees, now Copper is getting support at 356 and below same could see a test of 352.9 level, And resistance is now likely to be seen at 361.8, a move above could see prices testing 364.5. 
 
 
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Suhani Verma

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