Technically Copper market is under long liquidation as market has witnessed drop in open interest by 4.4% to settled at 3763 while prices down 0.1 rupees.
Now MCX Copper is getting support at 527.2 and below same could see a test of 525.1 levels, and resistance is now likely to be seen at 530.8, a move above could see prices testing 532.3.
Copper yesterday settled down by 0.02% at 529.25 on expectations of strong demand from top consumer China. China's industrial output accelerated the most in eight months in August and retail sales grew, suggesting the economic recovery is gathering pace.
U.S. factory production increased for a fourth straight month in August, but the recovery is showing signs of strain, suggesting business investment in equipment could remain depressed through the end of the year as the COVID-19 pandemic drags on.
A Chinese official said coronavirus vaccines being developed in China may be ready for use by the general public as early as November, boosting confidence in the economic rebound. On warrant copper stocks in LME-registered warehouses rose to a three-week high of 45,950 tonnes but have fallen from around 250,000 tonnes in May.
In a sign of tight nearby supply, cash copper on the LME traded at an $18.50 premium to three-month metal. China’s copper cathode output rose sharply in August as almost no maintenance has been heard in the month and copper scrap supply was sufficient.
Survey showed that China produced 810,500 mt of copper cathode in August, up 8.14% from July and 5.58% from a year earlier. For the first eight months of 2020, China’s copper cathode output totalled 5.99 million mt, up 3.39% from the same period last year.
--Copper trading range for the day is 525.1-532.3.
--Copper prices steadied on expectations of strong demand from top consumer China.
--China's industrial output accelerated the most in eight months in August and retail sales grew, suggesting the economic recovery is gathering pace.
--On warrant copper stocks in LME-registered warehouses rose to a three-week high of 45,950 tonnes.
Courtesy: Kedia Commodities