Copper MCX Tips Today: Copper yesterday settled down by 1.82% at 697.8 amid concerns over demand due to Chinese power restrictions, put in place to keep emissions in check.
The National Development and Reform Commission, Beijing’s top economic planner, said it would work to resolve the power shortages that have plagued production since June.
Capping losses was data from the Shanghai Futures Exchange showing copper inventories in top consumer China fell for the seventh straight week to their lowest since June 2009.
The People’s Bank of China injected a total CNY 100 billion of 14-day reverse repos at an interest rate of 2.35 percent on September 30th 2021, the same as in the previous day, and marking the tenth straight day of cash injections in the financial system.
Copper MCX Tips Today & Trading Zone
- Copper MCX trading range for the day is 692—724
- Copper fell amid concerns over demand due to Chinese power restrictions, put in place to keep emissions in check.
- The NDRC said it would work to resolve the power shortages that have plagued production since June.
- PBoC injects liquidity into market for 10th day.
The central bank reinforced the moves aim to maintain liquidity in the banking system. The moves are also seen as a sign the authorities are willing to support the financial system and avoid a big collapse and contagion due to the Evergrande crisis.
Falling inventories have underpinned copper prices and helped to contain losses. Stocks in warehouses monitored by the Shanghai Futures Exchange fell to their lowest since May 2009, down 2.5% to 43,525 tonnes from last Friday. In warehouses registered with the LME, on-warrant stocks were at their lowest since June at 124,200 tonnes.
