Copper On MCX Settled Down -0.44%

Copper on MCX settled down -0.44% at 363.25 weighed down by signs of slowing growth in China and the United States. China's economy is likely to have remained on a stable footing in May, buoyed by solid gains in trade and investment as economic ties with the United States take a positive turn and infrastructure spending cushions domestic growth.

Spot copper held discounts across the regions in China in the week after Chinese Dragon Boat Festival from May 28-30, except that in south China which remained premiums as maintenance at copper smelters reduced inflows of inventory. In Shanghai, some imported copper entered into inventory by customs clearance after the holiday and more traders were active in selling goods for month-end cash demand in May.

However, downstream buyers purchased based on orders and planned to buy goods this week, leading to low copper offers at discounts of 90-30 yuan per tonne. US Commerce Department announced US copper cathode imports fell in April, and exports jumped. The country’s copper cathode imports were 50,398,416 kg in April, compared to 72,774,434 kg in March.

Total imports in the first four months of the year were 247,947,704 kg. Support can be seen in today’s session as investors reduce risk before the major political and economic events later this week. With British elections, an ECB policy meeting where policymakers may take a less dovish stance, and former FBI director James Comey's Senate testimony on all set for Thursday, investors are wary of taking big positions in markets. Technically now Copper is getting support at 359.6 and below same could see a test of 355.9 level, And resistance is now likely to be seen at 366.2, a move above could see prices testing 369.1.

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Suhani Verma

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