Copper Prices Settled Flat

Copper prices settled flat paring most of its gains pressured by a firmer dollar and a rise in inventories, offsetting better than expected factory growth in top metals consumer China. China's factories grew at the quickest pace in three months in June, buoyed by strong new orders in a sign of stabilising growth, though further slowdown in the world's second-biggest economy is inevitable as Beijing cracks down on debt risks. Copper stocks in LME warehouses rose 6,400 tonnes to 249,700 tonnes, LME data showed, indicating that supplies were adequate.

Copper production at Chile's Escondida copper mine, the world's largest, fell 63 percent in the first quarter of 2017 from a year earlier amid a prolonged strike, the mine said. TCs of spot imported copper concentrate were largely steady this past week. Quotes for spot TCs were $80-86 per tonne. Spot TCs appeared to have reached ceiling. Quotes by some cargo holders fell below $85 per tonne. Some mining companies in Chile are considering restarting some copper mines projects which have been postponed due to low copper prices.

However, they will do so after political uncertainty disappears. Copper inventories in Shanghai bonded area fell by 2,000 tonnes in the week ending Jun. 30. The inventories were 545,000 tonnes this past week, down from 547,000 tonnes on a weekly basis. Technically market is under fresh buying as market has witnessed gain in open interest by 44.8% to settled at 14812 while prices up 0.5 rupees, now Copper is getting support at 386.4 and below same could see a test of 384 level, And resistance is now likely to be seen at 390.7, a move above could see prices testing 392.6.

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Suhani Verma

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