MCX Zinc under long liquidation; Resistance seen at 193.1
MCX Natural Gas under fresh buying; Resistance seen at 202.4
MCX Crude Oil under fresh selling; Support seen at 3819
MCX Nickel under fresh selling; Support seen at 907
MCX Aluminium under long liquidation
Technically Copper market is under long liquidation as market has witnessed drop in open interest by 7.46% to settled at 12215.
Now MCX Copper is getting support at 447.3 and below same could see a test of 444.3 level, And resistance is now likely to be seen at 453.2, a move above could see prices testing 456.1.
Copper on MCX settled down 0.87% at 450.15 due to rising inventories and a drop in the premium for directly available metal signalled easing supply squeeze. Prices dropped after weak export data from China heightened market fears about a global economic slowdown, after European policymakers slashed growth forecasts for the bloc.
China’s unwrought copper imports fell year-on-year in February to their lowest in 11 months, while copper concentrate imports rose to tie with the all-time monthly record, signalling that the world’s top copper consumer is churning out more metal itself. Inventories in LME-registered warehouses stood at 116,725 tonnes, the lowest since 2008.
Related Post
The premium of cash LME copper over the three-month contract was at $35.50 a tonne after touching its highest since January 2015 at $70. The Indonesian government has approved one-year export allowances for copper concentrate for miners PT Freeport Indonesia and PT Amman Mineral Nusa Tenggara, officials from the Ministry of Energy and Mineral Resources said.
China’s decision to increase its budget deficit ratio to 2.8 percent this year from 2.6 percent in 2018 is appropriate for the economy, and leaves room for policymakers to manoeuvre, Finance Minister Liu Kun said. Expansion of China’s copper smelting capacity bolstered demand for seaborne concentrate, and raised domestic imports through the first two months of the year.
The latest customs data showed that China imported 1.93 million mt of copper concentrate in February, up 1.6% from January, and up 32.5% from a year earlier.
Trading Ideas:
–Copper trading range for the day is 444.3-456.1.
–Copper dropped due to rising inventories and a drop in the premium for directly available metal signalled easing supply squeeze.
–Prices dropped after weak export data from China heightened market fears about a global economic slowdown, after European policymakers slashed growth forecasts.
–China imported copper 311,000 tonnes, versus 479,000 tonnes in January.
Courtesy:Kedia Commodities
Source: Commodityonline.com
