Technically Copper market is under fresh buying as market has witnessed gain in open interest by 4.44% to settled at 4613 while prices up 3.35 rupees.
Now MCX Copper is getting support at 451.8 and below same could see a test of 448 levels, and resistance is now likely to be seen at 457.7, a move above could see prices testing 459.8.
Copper yesterday settled up by 0.74% at 455.45 helped by lower inventories and as a resurgence of COVID-19 cases among workforce in the top-producing region highlighted supply risks.
A string of better than expected U.S. and European economic data was overshadowed by a surge in coronavirus cases in US and South America.
Supply concerns were triggered by BHP announcing stricter health protocols at the world’s largest copper mine, Escondida, while the Chilean government imposed lockdowns for the mines-heavy Antofagasta region.
International Monetary Fund said the pandemic was causing wider and deeper damage to economic activity than first thought, prompting it to cut its 2020 global output forecasts further to 4.9% from 3%.
Copper inventories in warehouses tracked by the Shanghai Futures Exchange (ShFE) fell below 100,000 tonnes for the first time in more than 17 months on tight scrap supply and solid Chinese demand.
In the week ended June 24, copper stocks in ShFE warehouses fell 9.1% to 99,971 tonnes, their lowest since Jan. 11, 2019, exchange data showed. Copper users consume both scrap and refined copper as input materials.
Tight scrap supply lead to a greater draw on the refined metal stored in ShFE warehouses. China, the world’s biggest user of the red metal, is expected to consume 11.4 million tonnes of refined copper this year.
--Copper trading range for the day is 448-459.8.
--Copper gained helped by lower inventories and as a resurgence of COVID-19 cases among workforce in the top-producing region highlighted supply risks.
--Falling copper stocks in warehouses tracked by the ShFE indicated that strong demand from top consumer China.
--Supply concerns were triggered by BHP announcing stricter health protocols at Escondida, while Chilean government imposed lockdowns.
Courtesy: Kedia Commodities