Technically MCX Copper is getting support at 482 and below same could see a test of 478.9 levels and resistance is now likely to be seen at 487.7, a move above could see prices testing 490.3.
Copper on MCX settled flat at 485.05 while LME Copper prices hit one-week lows as worries about demand in top consumer China undermined sentiment before a lower dollar and labour negotiations at the Escondida mine in Chile helped prices to recover after the U.S. open.
Benchmark copper on the London Metal Exchange ended 0.5 percent up at $7,256 a tonne, its highest since June 6, having earlier touched $7,169. London copper edged down trading near a one-week low, ahead of a slew of Chinese data including industrial output that should provide more clues on the pace of growth in the world's No. 2 economy and top copper user.
Meanwhile Global miner BHP said it had responded to the latest contract proposal from unionised workers at its Escondida mine, the world’s largest, triggering a new round of talks that could last a month or more.
The union’s proposal, filed with the company in early June, included a salary increase of 5 percent and a one-off bonus of $34,000, equivalent to 4 percent of dividends distributed to shareholders. Most base metals rose overnight. LME and SHFE nickel led the increases with a gain of over 2%.
LME copper touched a low in one week on worries over demand. LME aluminium and tin weakened. SHFE tin dropped over 1% and aluminium dipped. Now trader are eyeing for key factors to watch today include China’s economic data in May, European Central Bank meeting, US import price index and retail sales growth in May, and US initial jobless claims over the week ended June 9.
--Copper trading range for the day is 478.9-490.3.
--Copper settled flat as worries about demand in China undermined sentiment before a lower dollar helped prices to recover.
--China's total social financing, a broad measure of credit and liquidity in the economy, dropped sharply to 760.8 billion yuan in May from 1.56 trillion yuan in April.
--Global copper concentrate output to grow at a slower pace and unable to meet the demand from additional smelting capacities.
Courtesy: Kedia Commodities