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Copper on MCX settled up 2.38% at 451.25, technically Copper market is under short covering as market has witnessed drop in open interest by 5.14% to settled at 13258 while prices up 10.5 rupees.
Now MCX Copper is getting support at 441.5 and below same could see a test of 431.7 levels and resistance is now likely to be seen at 456.9, a move above could see prices testing 462.5.
Copper prices rose after the presidents of the United States and China both expressed optimism about resolving a trade row between the two countries. Copper, considered an economic bellwether, has been weighed down this year by fears the U.S.-China trade row will curb demand for industrial metals.
U.S. President Donald Trump wants to reach an agreement with Chinese President Xi Jinping at the Group of 20 nations summit in Argentina later this month. Chinese President Xi Jinping on Thursday promised support for struggling private firms, pledging more tax cuts and financial aid, underscoring government resolve to support the private sector as growth slows.
Inventories of copper in LME-approved warehouses, at 143,125 tonnes, are down more than 60 percent since the 2018 peak near 390,000 tonnes. The problem is compounded by cancelled warrants at nearly 54 percent of total stocks and a large holding of copper warrants between 50 and 79 percent.
China’s Arrivals of scrap copper in September plunged 38.9 percent to 200,000 tonnes, curbed by the hefty tariffs on imports from the United States.
The global world refined copper market showed a 47,000 tonnes deficit in July, compared with a 38,000 tonnes deficit in June, the ICSG said. For the first 7 months of the year, the market was in a 157,000 tonnes deficit compared with a 188,000 tonnes deficit in the same period a year earlier, the ICSG said.
Trading Ideas:
–Copper trading range for the day is 431.7-462.5.
–Copper prices rose after the presidents of the United States and China both expressed optimism about resolving a trade row between the two countries.
–China’s Arrivals of scrap copper in September plunged 38.9 percent to 200,000 tonnes, curbed by the hefty tariffs on imports from the United States.
–The global world refined copper market showed a 47,000 tonnes deficit in July, compared with a 38,000 tonnes deficit in June, the ICSG said.
Courtesy: Kedia Commodities
Source: Commodityonline.com
