Copper on MCX settled down -1.25% at 445.30
Copper on MCX settled down -1.25% at 445.30 fell but remained near multi-year highs on strong global growth and supply worries from a crackdown on polluting smelters in China. Support will seen as Chilean miner Codelco said that Copper prices could test record highs above $10,000 a ton as the supply-demand balance shifts to “substantial” deficits from 2018. Goldman Sachs Group Inc. also predicts the metal will continue to benefit from synchronized global growth. Copper is up 24 percent this year at $6,866 a ton on the LME, and last month reached a three-year high. Sentiments remain firm as boosted by expectations of healthy demand from the electric vehicle sector, a pollution crackdown in China and signs of solid global economic growth. Participants at the LME Week industry gathering in London last week were bullish about the sector’s prospects, especially because of anticipated growth in demand for electric vehicles, which depend heavily on nickel and copper. While Copper production in Democratic Republic of Congo, Africa’s top producer of the metal, was up 9.3 percent this year through September over the same period last year at 831,000 tonnes. Now market participants were also monitoring U.S. President Donald Trump’s Asian tour. Trump arrived in South Korea on Tuesday amid concerns Washington may resort to military action against its Northern neighbour. Technically market is getting support at 442 and below same could see a test of 438.7 level, And resistance is now likely to be seen at 450.7, a move above could see prices testing 456.1.
# Copper trading range for the day is 438.7-456.1.
# Copper dropped tracking weakness in LME prices on profit booking after prices seen supported on strong global growth.
# Copper production in the Democratic Republic of Congo, rose by 9.3 percent in the first nine months of this year, but soaring inflation remains a risk to the economy.
# China’s copper scrap imports will fall precipitously in the foreseeable future due to the ban on the import of copper scrap in Category 7.