COPPER

FUNDAMENTALS

Copper plunged down Wednesday on growing concerns about global economy’s health. On Tuesday Fed said a housing slump, tighter credit conditions and high oil prices would likely slow U.S. economy’s growth in 2008.

LME Copper also went down sharply following another build up in LME warehouse copper stocks, heavy losses in broader financial markets and concerns about possible monetary policy tightening by Chinese government that may damp demand in property sector. The National Association of Realtors also reported home prices declined in one third of the U.S. metropolitan areas during the last quarter.

The General Administration of Customs revealed China’s refined copper imports in October rose 43.6% on year to 98,155 mt. Its total imports during the first ten months increased 92.3% on year to 1.28 million mt. The World Bureau of Metal Statistics disclosed world copper market was in a deficit of 334,000 mt during the first nine months as against a surplus of 3000 mt for 2006 calendar year. In September, refined copper output was 1.457 million mt and consumption was 1.442 million mt.

LME warehouse stocks added 1425 mt to build 182,700 mt Wednesday. However Comex copper stocks remained unchanged at 17,981 st.

TECHNICALS

Copper chart is displaying a downtrend of prices. Copper prices have closed far below short and medium term EMA’s showing weakness. MACD is falling in negative zone showing bearish momentum. RSI and Stochastic Oscillator are falling in oversold region indicating weakness. Copper may trade volatile during the session.

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