Technically MCX Copper is under fresh selling as market has witnessed gain in open interest by 3.94% to settled at 16285 while prices down -1.6 rupees.
Now Copper is getting support at 363.8 and below same could see a test of 362.2 level, And resistance is now likely to be seen at 367.5, a move above could see prices testing 369.6.
Copper on MCX settled down -0.44% at 365.45 as markets priced in a higher U.S. interest rate environment that would support the dollar.
China’s housing market is cooling down following a series of restrictive policy, and such condition is expected to be continuing during the rest of the year.
Data showed China's economy generally remained on a solid footing in May, but tighter monetary policy, a cooling housing market and slowing investment reinforced views that it will gradually lose momentum in the coming months.
China's production of copper rose 6.8 percent to 727,000 tonnes in May, while the output of steelmaking ingredient iron ore increased 3.8 percent from a year ago, according to the National Statistics Bureau.
China’s copper cathode output was 3.586 million tonnes in the first five months of this year, a rise of 7.2% year-on-year. Copper imports grew sharply in May along with concentrated arrivals of shipments, but it is now the final stage of peak-demand season, with demand support waning.
Imports of copper concentrate via the Port of Fangchenggang valued at 9.5 billion yuan during the first five months of 2017, up by one-fold on a yearly basis.
The surge was due mainly to following three factors. First, domestic large copper producers have made breakthrough in overseas ore mining projects. Second, Jinchuan Group’s project in Fangchenggang poses big demand for copper ore. Third, the optimization of customs service facilities imports.
--Copper trading range for the day is 362.2-369.6.
--Copper prices ended with losses as markets priced in a higher U.S. interest rate environment that would support the dollar.
--China's production of copper rose 6.8 percent to 727,000 tonnes in May, according to the National Statistics Bureau.
--Copper imports grew sharply in May along with concentrated arrivals of shipments, but it is now the final stage of peak-demand season.
Courtesy: Kedia Commodities