Corrective Wave Continues In Copper

Copper....
Weak Asian Cues and bashing of Shanghai Copper lent bearish hands to MCX Copper that was eyeing the developments in China. The metal dropped by 1290 yuan per tonne in Shanghai Exchange with most active July expiry contract closing at 53740 yuan per tonne. The bearish sentiments flowed to Indian prices that started on a dull note for the third time in last three trading session. Troubles in the metal have erupted on the calls that China will further tame down heating property markets. The measures adopted earlier included raising of down payment requirements, stricter norms for property purchases.
China Purchase Manager's Index (PMI) for manufacturing sector grew marginally to 50.9 percent in March according to data release; this was higher than 50.1 percent in the month of February. The agency China Federation of Logistics and Purchasing (CFLP) that released the data said that it was the result of rise in trade activity, increasing orders and slowing price increase of upstream products. However, Copper took little respite from the fall as the fundamentals are turning terribly bleak.
The Copper premiums are declining and the trading activity is a bit cautious. Apart from the decline in Copper premiums one has seen reduction in financing activities of Copper after the recent fall in prices. LME futures are closed for Easter and its continuation of trading on Tuesday will be interesting to note. The prices settled at $ 7613 per tonne on 28 March last month. Copper has corrected by 3.3% this year so far while the inventories has increased by 79% in 2013. This means that the correction is long overdue and can bring prices significantly downwards.
Indian Copper April expiry was finding difficult to stay at Rs 406.1 per kg when last seen. The prices this week will face enough volatility after European markets reopening tomorrow. MCX Copper at the moment looks resisted at Rs 410 per kg while the support for the metal is at Rs 405 and Rs 403 per kg. Among other metals, Nickel was trading at Rs 909 per kg, down 0.31%. The metal is supported at Rs 901 per kg.
Source by Commodity Insights