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New York
Monday, August 15, 2022

Copper market under fresh selling; Support seen at 418.9

Aluminium market under short covering; Support seen at 146.2

Nickel market under fresh selling; Resistance seen at 896.6

MCX Zinc under fresh selling; Support seen at 172.8

MCX Cotton market under short covering; Support seen at 22736.6

MCX Cardamom under fresh buying; Support Seen at 1438.4

Technically Copper market is under fresh selling as market has witnessed gain in open interest by 2.16% to settled at 19658 while prices down 1.8 rupees.

Now MCX Copper is getting support at 418.9 and below same could see a test of 415.1 levels and resistance is now likely to be seen at 426.5, a move above could see prices testing 430.3.

Copper on MCX settled down -0.42% at 422.6 as investors braced for new U.S. tariffs on China. On-warrant stocks of copper available to the market in LME-registered warehouses rose by 850 tonnes to 147,450 tonnes but are still down from more than 234,000 tonnes in mid-August, signalling a tighter market.

Stockpiles in Shanghai Futures Exchange (ShFE) warehouses have fallen to 136,051 tonnes from more than 300,000 tonnes in April. Treatment and refining charges (TC/RCs) paid to China’s copper smelters are set to drop below $80 a tonne next year as processing capacity expands and copper concentrate falls into a deficit.

Copper miners pay the charges to smelters to process ore into refined metal, offsetting what the smelters pay for copper concentrate. An annual benchmark agreed by both sides towards the end of each year plays a large part in determining the profitability of global copper miners and smelters.

Antaike forecasts that annual copper smelting capacity in China, the world’s biggest copper consumer, will increase by 950,000 tonnes in 2019, on top of an expected 1.08 million tonnes of additions this year. The world’s largest copper mine, Escondida in Chile, recently avoided a labour strike and a potential outage.

Freeport-McMoRan Inc in July, however, said a revised development plan at the second-biggest deposit, Grasberg in Indonesia, would reduce copper production during a transition to underground mining in 2019 and 2020.      

Trading Ideas:
–Copper trading range for the day is 415.1-430.3.
–Copper prices ended with losses as investors braced for new U.S. tariffs on China.
–Copper inventories in warehouses monitored by the Shanghai Futures Exchange fell 1.4 percent from last Friday, the exchange said.
–On-warrant stocks of copper available to the market in LME-registered warehouses rose by 850 tonnes to 147,450 tonnes.

Courtesy: Kedia Commodities

Source: Commodityonline.com

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