Copper on MCX settled down -2.53% at 315.8 after China's September trade data showed a sharp decline in exports, raising fresh concerns about the health of the economy. China's imports of copper last month fell by 26.1 percent compared with September 2015 and, at 340,000 tonnes, were also lower by 10,000 tonnes from August. Its concentrate imports declined last month by 4.1 percent to 1.39 million tonnes. China's September exports fell 10 percent from a year earlier, far more than expected, while imports unexpectedly shrank after picking up in August, deepening concerns over the latest depreciation in China's yuan currency.
China's refined metal production jumped by 12.4 percent in August and is up by 8.7 percent this year at 5.498 million tonnes. The Fed released the minutes of its last rate-setting meeting, which showed several policymakers felt a rate hike was warranted "relatively soon" if the U.S. economy continued to strengthen. Import prices in the U.S. saw a modest uptick in the month of September, according to a report released by the Labor Department. The report said import prices inched up by 0.1 percent in September after falling by 0.2 percent in August.
The uptick in prices matched economist estimates. The modest increase in import prices reflected a jump in prices for fuel imports, which surged up by 1.1 percent in September after tumbling by 2.4 percent in August. A 1.2 percent jump in petroleum prices contributed to the increase in fuel prices along with a 0.8 percent increase in natural gas prices. Technically now Copper is getting support at 313.1 and below same could see a test of 310.3 level, and resistance is now likely to be seen at 320.9, a move above could see prices testing 325.9.
--Copper trading range for the day is 310.3-325.9.
--Copper dropped after China's September trade data showed a sharp decline in exports, raising fresh concerns about the health of the economy.
--Copper imports dropped by 26 percent from a year ago and 2.9 percent from month ago to 340,000 tonnes in September, data showed.
--Chinese imports in dollar terms were back in contractionary territory in September, while exports dropped by a sharper-than-expected 10 percent.
Courtesy: Kedia Commodities