FUNDAMENTALS

Copper prices were weighed down by a hefty and continuous increase in LME warehouse stocks Tuesday. The prices also fell as weakness was seen in equity markets and gains in crude oil prices failed to rescue it from recent declines.

Moreover, Zambia’s fuel crisis eased and dollars recovery against most counterparts also withdrew buyer’s interest from the metal.

LME warehouse copper inventories build by 875 mt to 140,525 mt.

The Central Bank of Chile revealed Chile’s export of copper in Sep rose 3.3% on year to $ 3.01 billion. Its Aug copper exports were $ 2.71 billion. 

China’s imports of copper concentrates in Sep aggregated to 270,000 mt as against Aug 556,444 mt. Its total concentrate imports during Jan-Sep increased 27% on year to 3.46 million mt as per the preliminary data released by the General Administration of Customs

Copper may continue to consolidate with slight weakness in the near term as LME stocks continue to increase & dollar is seen volatile. Moreover officials in G7 meeting Friday is likely to take steps to restrict Euro’s record highs. However possibility of buying to emerge at reduced levels can not be ruled out.

TECHNICALS

Copper chart is displaying slight consolidation.  Prices have closed below short & medium term EMA’s showing weakness. MACD is falling in positive zone showing decreasing bullish momentum. Stochastic is rising in neutral region indicating firmness though RSI is falling in neutral region indicating weakness. Copper prices may remain volatile to slightly weak.