Technically copper market is under long liquidation as market has witnessed drop in open interest by 4.54% to settle at 11338.
Now MCX Copper is getting support at 452.6 and below same could see a test of 449 levels and resistance is now likely to be seen at 459.7, a move above could see prices testing 463.2.
Copper on MCX settled down -0.21% at 456.15 hurt by a shift to stocks due to U.S. earnings optimism and a rise in oil prices. China’s imported unwrought copper reached 4.69 million mt in 2017, down 5.2% from levels seen in 2016.
The import volume in December stood at 450,000 mt, down 4.3% from a month ago and down 8.2% from December 2016. Trading in China’s physical imported copper market is likely to stay thin until Chinese New Year with spot premiums under pressure.
China’s copper output rose in December as some large producers looked to hit their annual production target at the year-end. Qingyuan Jiangxi Copper and Shandong Humon Smelting Group also resumed production in December while other small and medium-sized smelters cut output due to environmental protection measures.
China’s copper output in January to drop from levels seen in December due to limited production from small to medium-sized smelters, slower production pace at larger ones, and the ongoing testing work at Huludao Hongyue Copper’s 150,000-mt project.
The World Bank released its global forecasts on Wednesday, expecting the strongest growth rate since the financial crisis, with global GDP expected to grow 3.1% in 2018, up from 3% in 2017.
Emerging economies will lead global growth, especially those relying on commodity exports, with the bank expecting a 4.5% growth rate for them in 2018 before settling at 4.7% in 2019 and 2020, while developed economies are projected to grow 2.2% in 2018, down from 2.3% in 2017.
--Copper trading range for the day is 449-463.2.
--Copper dropped hurt by a shift to stocks due to U.S. earnings optimism and a rise in oil prices.
--Tongling Nonferrous Metals Group, will suspend production at its Jinguan Copper unit for three days from Friday for repairs.
--China’s copper output rose in December as some large producers looked to hit their annual production target at the year-end.
Courtesy: Kedia Commodities