Copper.......
Long-drawn-out shutdown in world's second biggest mine has
underpinned Copper prices that are marching forward. The LME three month
Copper prices were trading at 11 days high levels as it crossed $ 7400
per tonne. Copper has been gaining on account of higher spot premiums in
China due to lower available quantity.
Meanwhile, Freeport
Grasberg mine was closed down and is expected to remain closed for
government investigation for a period of three months. Production outage
can slash 150000 to 200000 tonnes of Copper supplies from the markets.
Inventories of Copper are still at higher levels at 614075 tonnes, up 92
percent in 2013 so far.
MCX Copper closed down at Rs 420.5 per
kg, up 1.2 percent. Further gains are expected in the markets with
targets of Rs 422 kg. Supports for Copper are at Rs 416 and 414 levels.
Markets
are cheering few factors at the moment. One is the closure of Freeport
mine, the other one is the rise of Euro against the Dollar. Dollar ended
the trades at 1.3081 against the Euro, compared to 1.3069 on Monday.
Last
week, COMEX Copper fund managers, Commitment of traders CoT report
showed decline in the short positions while there was concurrent minor
decrease of long positions by hedge fund managers. The total short
positions declined by 899 contracts taking total short contracts number
to 36038 contracts against 36937 contracts in the previous week
Source by Commodity Insights
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