Copper On MCX Settled At 382.30 Traded

Copper on MCX settled at 382.30 traded steadied near one-week lows, underpinned by a weaker dollar and the threat of strikes at mines in Chile. Copper prices are holding key level of 380 level as traders reacted to a surge in LME stocks while the threat of a strike at two Chilean mines has prevented the commodity from experiencing significant downside on the stockpiling. This week, Chile’s Antofagasta Minerals said it was facing potential strikes at two mines.

Workers at Zaldivar will vote on whether or not to strike by the end of the week, while supervisors at the Centinela mine have already voted to strike, but a government mediation mechanism will extend negotiations for a few more days according to a spokesman for Chile’s mining federation said, as reported by Mining Weekly. The combined annual production at both mines is 160,000 tons of copper. The potential for a strike overshadowed another climb in inventories.

While LME inventories are climbing, traders are shrugging this off and they continue to bet on the red metal extending its recent rally. According to the US CFTC, hedge funds and other money managers boosted long positions by 9,531 contracts to 58,816 in the week through June 30. The net-long copper position is now nearly double the 29,787 contracts reported on May 9.

This more optimistic sentiment for copper is a result of improved demand expectations from the metal’s top consumer China. Technically market is getting support at 380.9 and below same could see a test of 379.6 level, And resistance is now likely to be seen at 383.7, a move above could see prices testing 385.2.

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Suhani Verma

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