Technically Copper market is under long liquidation as market has witnessed drop in open interest by 15.37% to settled at 2957 while prices down 8.7 rupees.
Now MCX Copper is getting support at 683.8 and below same could see a test of 671.5 levels, and resistance is now likely to be seen at 709.9, a move above could see prices testing 723.7.
Copper yesterday settled down by 1.23% at 695.95 as a debt crisis at China developer Evergrande Group spurred a sell-off across markets and stoked worries over global demand.
The global world refined copper market showed a 90,000 tonnes deficit in June, compared with a 4,000 tonnes surplus in May, the International Copper Study Group (ICSG) said in its latest monthly bulletin.
For the first 6 months of the year, the market was in a 2,000 tonnes deficit compared with a 67,000 tonnes surplus in the same period a year earlier, the ICSG said. World refined copper output in June was 2.03 million tonnes, while consumption was 2.12 million tonnes.
Aurubis AG , Europe’s largest copper producer, said on Monday its Stolberg copper products plant in Germany will start resuming some production on Nov. 1. Chile’s copper commission Cochilco forecast the global copper market to be in a supply deficit of 153,000 tonnes in 2021, while it expects a surplus of 190,000 tonnes for 2022.
Investors were in wait-and-watch mode with a U.S. Federal Reserve meeting taking the spotlight in a week full of central bank events. China’s refined copper output in August rose 1.9% year on year to 874,000 tonnes, its highest monthly level since April.
Trading Ideas:
–Copper trading range for the day is 671.5-723.7.
–Copper prices dropped as a debt crisis at China developer Evergrande Group spurred a sell-off across markets and stoked worries over global demand.
–Copper market in 90,000 tonnes deficit in Jun 2021 – ICSG.
–Chile’s copper commission Cochilco forecast the global copper market to be in a supply deficit of 153,000 tonnes in 2021.
Courtesy: Kedia Commodities
Source: Comodity Online
