Technically Copper market is under long liquidation as market has witnessed drop in open interest by 24.21% to settled at 2098 while prices down 9.2 rupees.
Now MCX Copper is getting support at 524.8 and below same could see a test of 520.1 levels, and resistance is now likely to be seen at 537, a move above could see prices testing 544.5.
Copper yesterday settled down by 1.71% at 529.35 as fears that a U.S. stimulus package will not be reached before the November presidential election weighed on prices.
Talks between Democrats and the White House faced a setback when President Donald Trump accused them of being unwilling to craft a compromise on coronavirus aid.
The global copper market should see a deficit of 52,000 tonnes this year and a surplus of 69,000 tonnes in 2021, the International Copper Study Group (ICSG) said on Monday.
"After stagnant output in 2019, world refined copper production is expected to increase by about 1.5% in 2020 and 2021," the ICSG said. Workers at Chile´s state-run Codelco, the world's largest copper producer, took to the streets to reject layoffs announced by the sprawling mine company during the coronavirus pandemic.
China's government on Monday published customs codes for copper, aluminium and brass scrap that meet new standards that it said could be imported without restriction from Nov. 1, even after a ban on foreign solid waste takes effect at the end of this year. Chile´s Candelaria copper mine, owned by Canada's Lundin Mining, announced it planned to suspend operations after two of its unions called on their workers to begin strikes.
--Copper trading range for the day is 520.1-544.5.
--Copper eased as fears that a U.S. stimulus package will not be reached before the November presidential election weighed on prices.
--Global copper market to see 69,000 tonne surplus in 2021, says ICSG.
--Chile´s Candelaria copper mine to suspend operations amid union strikes.
Courtesy: Kedia Commodities