FREE COMMODITY COPPER NEWS 02-01-17
Copper on MCX settled up 0.64% at 376.8 amid falling stocks and expectations of stronger demand in top consumer China persuaded buyers to return to the market. Large deliveries of copper to LME-registered warehouses --
thought to be from China -- helped to fuel the sell-off. Deliveries between December 8 and December 16 rose by more than 60 per cent to 345,475 tonnes. Since then stocks are down more than three per cent. Markets
started the year on a sombre note due to weak demand growth in top consumer China and massive supply overhangs. Over the course of 2016 the mood brightened as Chinese authorities pumped money into the economy,
much of it into infrastructure. The copper market already had excess supply and inventories had risen to 213,000 tonnes at the start of December. Since then, the rising price has further unbalanced supply and demand
swelling inventories by over 60%. Copper has soared at a time when most commodities have been dwindling following the Federal Reserve's decision to raise interest rates. Copper has undergone a rapid improvement
primarily due to the surprise election on Donald Trump. President Trump was elected on a platform of infrastructure spending, hefty tax cuts, and cutting regulation. So, investors expect both a booming economy and direct
benefits to copper specifically. Copper is a raw material crucial for infrastructure expansion and an expanding capital base so demand expectations significantly improved on the election of a President promising hefty growth.
Technically market is under fresh buying as market has witnessed gain in open interest by 4.99% to settled at 14927 while prices up 2.4 rupee, now Copper is getting support at 375.2 and below same could see a test of
373.5 level, And resistance is now likely to be seen at 378.6, a move above could see prices testing 380.3.
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thought to be from China -- helped to fuel the sell-off. Deliveries between December 8 and December 16 rose by more than 60 per cent to 345,475 tonnes. Since then stocks are down more than three per cent. Markets
started the year on a sombre note due to weak demand growth in top consumer China and massive supply overhangs. Over the course of 2016 the mood brightened as Chinese authorities pumped money into the economy,
much of it into infrastructure. The copper market already had excess supply and inventories had risen to 213,000 tonnes at the start of December. Since then, the rising price has further unbalanced supply and demand
swelling inventories by over 60%. Copper has soared at a time when most commodities have been dwindling following the Federal Reserve's decision to raise interest rates. Copper has undergone a rapid improvement
primarily due to the surprise election on Donald Trump. President Trump was elected on a platform of infrastructure spending, hefty tax cuts, and cutting regulation. So, investors expect both a booming economy and direct
benefits to copper specifically. Copper is a raw material crucial for infrastructure expansion and an expanding capital base so demand expectations significantly improved on the election of a President promising hefty growth.
Technically market is under fresh buying as market has witnessed gain in open interest by 4.99% to settled at 14927 while prices up 2.4 rupee, now Copper is getting support at 375.2 and below same could see a test of
373.5 level, And resistance is now likely to be seen at 378.6, a move above could see prices testing 380.3.
