COPPER

FUNDAMENTALS

Copper prices drifted lower on concerns about slowing US economy, increasing LME inventories, fewer imports by China owing to increasing in Chinese domestic copper output.

China’s National Bureau of Statistics on Monday disclosed China’s October copper production climbed 42.5% on year to 358,000 mt. Its copper output during Jan-Oct rose 19% on year to 2.85 million mt. LME warehouse stocks grew 1275 mt to reach 180,925 mt Monday.  

Further copper weakened as Chile’s Codelco offered some Chinese customers 2008 refined copper premium of $110 mt. Benchmark premium last year was between $ 130-135.

The macro economic factors also suppressed copper prices. Weakness in the US, UK equities, heightening credit market concerns, worries about global economy’s health and slight stability now appearing in the greenback is pressurizing copper.

Copper may continue weak following reduced imports from China, on growing concerns about credit markets performance and slowing US economy.

TECHNICALS

Copper chart is displaying a downtrend of prices. Candlestick formation is showing bearish sentiments. Copper prices have closed far below short and medium term EMA’s showing weakness. MACD has made a bearish crossover in negative zone showing bearish momentum. RSI is falling in oversold region and Stochastic is falling in neutral region indicating weakness. Copper may trade volatile with weak bias during the session.

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