Copper Hovers Near Seven Month Low Levels

Copper.......
Three month Copper prices remained hovering near seven month low levels on LME while Indian Copper prices struggled at higher levels. US jobs data is eyed by the markets for further triggers after the US manufacturing numbers dejected the sentiments earlier this week. Further caution is prevailing before the next set of moves in the metals kick in.
LME Copper three month prices were trading at $ 7434 per tonne, down $ 34 per tonne. Indian Copper breached some key levels of Rs 405.5 and Rs 404 per kg in intraday trades today and was looking extremely bearish.
Meanwhile, US Securities and Exchange Commission (SEC) have said that the Copper ETFs planned by JP Morgan Chase and Co will not distort supplies or prices of Copper. The fears were looming large that the ETF planned by JP Morgan Chase will create a dearth of supplies and artificially inflate the prices of Copper. But the commitment shown by US SEC towards such ETF is a blow to the manufacturers.
After the decision it is clear that Copper ETF will form part of markets and can create investment demand for the metal that is suffering from high supplies in the markets at the moment. Meanwhile, stainless steel material Nickel is suffering from supply glut that can take it to lower grounds. Nickel has seen a jump of 20 percent in inventories this year that are now at 166716 tonnes. The estimates from Nickel groups suggest that commodity will turn into surplus this year. Price wise Nickel has corrected by 4 percent on LME this year.
On MCX, April Copper was seen trading at Rs 405.9 per kg, after testing a low of Rs 403.9 per kg. The metal is expected to test Rs 400 as next support. Copper is treated as a economic indicator and going by the declines it seems that the world economy is in bad shape particularly of China and US.
MCX Nickel breached Rs 900 per kg yesterday and continues to trade below this level. The prices are at four month lows of Rs 885 per kg, down 1.2%. Supports for the contract are at Rs 875 per kg while Resistance is at Rs 895 per kg.
Source by Commodity Insights