Copper......
futures are off from their recent highs as some profit selling is emerging in the commodity on account of Chinese growth worries. The LME three-month copper had surged around 3% yesterday on the accommodative stance of the US Fed but pared back some of these gains today and currently quotes under the key $7000 per tonne mark. The COMEX Copper is also down nearly half a percent at $3.1605 per pound.
China's economic growth rate will likely average 7% this year, Chinese Finance Minister Lou Jiwei said yesterday, according to media reports. This is much below the government's 7.5% target and would mark a slowing from 7.7% growth reported for the first quarter of this year. However, Lou also said the economy would not suffer a hard landing and that the slower growth was necessary for the reforms that the government is undertaking to further open up the economy and move away from dependence on exports.
Data out earlier in the week showed that Chinese copper imports of refined metal, alloy and products were 379,951 tonnes in June, the highest since September. China consumes some 42% of the world's copper. However, much of this spurt could be construed as traders taking advantage of low prices in LME compared to that in Shanghai and as such, would be a mere arbitrage play. The latest headline export data from China confirms that the actual demand from export heavy Chinese industries is poor. China's exports slipped 3.1% in June from a year earlier, the first decline since January 2012, the Customs Administration said on Wednesday.
The US dollar is quoting around 1.3070 against the Euro, coming off its three week low after a massive hammering yesterday. This is exerting some pressure on copper and other commodities. MCX Copper tested a high of Rs 425.25 per kg last night and closed the session with a gain of Rs 11.05 per kg with a 4% increase in open interest. The counter is quoting at Rs 420.30; down Rs 2.75 per kg on the day with around 5% increase in open interest so far. This is a trifle unclear pattern and the meta could hold on only if it maintains above Rs 420 levels.
MCX Copper
China's economic growth rate will likely average 7% this year, Chinese Finance Minister Lou Jiwei said yesterday, according to media reports. This is much below the government's 7.5% target and would mark a slowing from 7.7% growth reported for the first quarter of this year. However, Lou also said the economy would not suffer a hard landing and that the slower growth was necessary for the reforms that the government is undertaking to further open up the economy and move away from dependence on exports.
Data out earlier in the week showed that Chinese copper imports of refined metal, alloy and products were 379,951 tonnes in June, the highest since September. China consumes some 42% of the world's copper. However, much of this spurt could be construed as traders taking advantage of low prices in LME compared to that in Shanghai and as such, would be a mere arbitrage play. The latest headline export data from China confirms that the actual demand from export heavy Chinese industries is poor. China's exports slipped 3.1% in June from a year earlier, the first decline since January 2012, the Customs Administration said on Wednesday.
The US dollar is quoting around 1.3070 against the Euro, coming off its three week low after a massive hammering yesterday. This is exerting some pressure on copper and other commodities. MCX Copper tested a high of Rs 425.25 per kg last night and closed the session with a gain of Rs 11.05 per kg with a 4% increase in open interest. The counter is quoting at Rs 420.30; down Rs 2.75 per kg on the day with around 5% increase in open interest so far. This is a trifle unclear pattern and the meta could hold on only if it maintains above Rs 420 levels.
Source by Commodity Insights
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