COPPER

FUNDAMENTALS

Copper prices slipped again continuing with the impact of Wednesday released fourteen years lowest US housing starts data. The prices further declined as another hefty increase in LME warehouse copper inventories was noticed.

Moreover the situation worsened with release of higher than expected US initial claims numbers. Bank of America’s poor Q3 results and series of weak US economic data once again brought concerns about credit market situation.  

The prices however came to respite from sharp falls as crude oil rallied to new highs and dollar fell to record lows.

LME warehouse copper inventories increased by 4625 mt to build 147,750 mt Thursday.

WBMS recently revealed world copper market saw 41,000 mt surplus in August. However, witnessed a deficit of 243,000 mt during January - August.

Copper may continue weak on huge inventory build ups and renewed concerns about credit market and weakening US economy. The market will be keeping an eye on Friday’s G7 meeting and SHFE weekly stock details.

TECHNICALS

Candlestick pattern show bearish sentiments are prevailing in the market. The prices have closed below short & medium term EMA’s showing weakness. MACD is falling in negative zone showing bearish momentum. Stochastic Oscillator and RSI are falling in neutral region indicating weakness. Copper prices may continue slightly weak with chances of increased volatility due to late session profit booking.    

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