yesterday settled down by -0.32% at 753.75 as China’s copper output rose 6.71% in December from the previous month to 802,200 tonnes as producers stepped up production to meet annual targets. The 22 major copper smelters surveyed, hiked output last month thanks to fewer maintenance breaks and easing power shortages across the country, Antaike said in a statement, adding that December production dipped 2.45% on an annual basis. However, the downside is seen as limited supported by concerns of supply tightness amid persistent low inventories.
Inventories in warehouses monitored by the Shanghai Futures Exchange were last at 29,182 tonnes, close to a more than a decade low of 27,171 tonnes seen in December. Inventories in LME-registered warehouses, at 83,800 tonnes, are down from more than 250,000 tonnes in August. Meanwhile, the threat of a strike at Teck Resources Ltd’s Highland Valley copper mine in British Columbia added to supply tightness fears. The central bank of top metals consumer China is set to unveil more steps to support economic growth, which is expected to fall to 5.2% this year. China’s factory-gate prices rose more slowly than expected in December after government measures to contain high raw material prices, official data showed, leaving room for easing monetary policy.
Technically market is under long liquidation as the market has witnessed a drop in open interest by -6.14% to settled at 4063 while prices down -2.4 rupees, now Copper is getting support at 750.9 and below same could see a test of 747.8 levels, and resistance is now likely to be seen at 757.2, a move above could see prices testing 760.4.
# Copper trading range for the day is 747.8-760.4.
# Copper prices dropped as China’s copper output rose 6.71% in December from the previous month to 802,200 tonnes
# However, the downside is seen limited supported by concerns of supply tightness amid persistent low inventories.
# Inventories in LME-registered warehouses, at 83,800 tonnes, are down from more than 250,000 tonnes in August.