FUNDAMENTALS

MCX Copper prices traded slightly weak during weekend’s session. November expiry copper futures prices traded in a narrow price of Rs 273.8-275.4 a Kg.  

Copper inventories at the LME on Friday rose by 475 mt to 179,650 mt.  SHFE‘s weekly report showed drawdown of copper stocks and Comex copper inventories also dipped.  

The International Copper Study Group stated world copper market in August saw surplus output of about 60,000 mt. However when adjusted seasonally the market came out to be in a small deficit of 10,000 mt.

The National Bureau of Statistics of China stated China’s October copper output grew 42.5% on year to 358,000 mt. Its copper output in January-October rose 19% on year to 2.85 million mt.

Copper prices are these days affected by prevailing credit market concerns, increasing production in China and weak demand for copper from Asia.

TECHNICALS

Copper chart is showing tentativeness near the lows. Copper prices have closed below short and medium term EMA’s showing weakness. MACD is however rising in negative zone showing decreasing bearish momentum in the market. RSI and Stochastic Oscillator are falling in neutral region indicating weakness. Copper may trade volatile during the session.

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