Gold Silver Reports — Technically Copper market is under short covering as market has witnessed drop in open interest by 7.23% to settled at 16868 while prices up 2.9 rupees.
Now MCX Copper is getting support at 359.7 and below same could see a test of 354 level, And resistance is now likely to be seen at 366.7, a move above could see prices testing 370.
Copper on MCX settled up 0.8% at 364.15 as investors, speculators and consumers resumed buying after recent losses, expecting increased seasonal demand. Three-month copper closed up 1.2 percent at $5,623 a tonne, after closing slightly lower in the previous session when prices hit the weakest since early January at $5,530.
It was supported by news that Indonesian workers at U.S. mining giant Freeport McMoran Inc will stage a month-long protest against layoffs starting May 1. Union member Tri Puspital said the strike at the giant Grasberg copper mine in the eastern province of Papua was intended to disrupt production and that management had already been informed.
Grasberg copper mine produced 482,200 tonnes of copper in 2016. Grasberg copper mine just resumed operating after last lockout, which started on February 14, but met another strike soon, strengthening expectation over lower global copper supply.
National Bureau of Statistics (NBS) data show China’s copper cathode output increased 8.5% year-on-year to 764,000 tonnes in March, the highest from December 2015. Underlying the healthy supply picture, the International Copper Study Group said the global world refined copper market showed a 51,000-tonne surplus in January.
LME copper remained in a deep contango, indicating plentiful supply. The discount of LME cash copper to the three-month contract CMCU0-3 was at $32.75 a tonne, not far from $35.25 seen earlier in the month, the biggest discount since June 2013. — Neal Bhai Reports
