Technically Copper market is under fresh buying as market has witnessed gain in open interest by 0.28% to settled at 3640 while prices up 1.55 rupees.
Now MCX Copper is getting support at 716 and below same could see a test of 712.3 levels, and resistance is now likely to be seen at 723.8, a move above could see prices testing 727.9.
Copper yesterday settled up by 0.22% at 719.75 as falling stockpiles in exchange warehouses in top consumer China and shortage of scrap metal boosted demand for refined copper.
ShFE copper inventories on Friday fell for the seventh straight week to 44,629 tonnes, their lowest since June 2009. Tighter restrictions and supply disruptions also limited supplies of scrap copper, forcing some users to switch to copper cathode for consumption.
Yangshan copper premium rose to $114 a tonne, suggesting improving demand to import the metal into China, and LME cash copper premiums over the three-month contract was at $11.25 a tonne, indicating tight nearby supply.
China will release another 150,000 tonnes of metals from its state reserves on Oct. 9 to downstream fabricators and manufacturers, the National Food and Strategic Reserves Administration said.
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.
Trading Ideas:
–Copper trading range for the day is 712.3-727.9.
–Copper prices rose as falling stockpiles in exchange warehouses in top consumer China and shortage of scrap metal boosted demand for refined copper.
–ShFE copper inventories on Friday fell for the seventh straight week to 44,629 tonnes, their lowest since June 2009.
–Yangshan copper premium rose to $114 a tonne, suggesting improving demand to import the metal into China.
Courtesy: Kedia Commodities
Source: Comodity Online
