Copper On MCX Settled Up 0.21%

Copper on MCX settled up 0.21% at 383.4 spurred by a weaker U.S. dollar and concerns about industrial action that could further crimp mine supply. Workers voted to approve a strike at a mine in Chile, following industrial disputes earlier in the year in Indonesia and at the world's biggest copper mine, also in Chile. Prices had slipped nearly 3 percent since late June as stocks in LME-registered warehouses rose by a third, signalling plentiful supply.

Stocks fell 225 tonnes on Tuesday to 319,750 tonnes. Workers at Chile's Zaldivar mine voted to strike after talks with the firm failed. The nearby Centinela mine is also in negotiations over strike action. Together the two mines produced 340,000 tonnes of copper in 2016. But, the workers will not walk off immediately, since Chilean law calls for a government mediation period that will last at least five days before workers are legally permitted to strike.

Indonesia says it will invite the head of mining giant Freeport McMoRan Inc to Jakarta this month to try to settle a long-running dispute over a new deal to operate the world's second-largest copper mine. Rodrigo Valdes, Chile’s Finance Minister, said the Ministry raised the average copper price forecast from $2.20 to $2.50 per pound.

Technically market is under short covering as market has witnessed drop in open interest by -1.93% to settled at 12985 while prices up 0.8 rupees, now Copper is getting support at 382.1 and below same could see a test of 380.8 level, And resistance is now likely to be seen at 385.2, a move above could see prices testing 387.

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Suhani Verma

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