COPPER

FUNDAMENTALS

Copper plunged down Wednesday on large build up in LME warehouse copper inventories. The prices were further dragged down following release of weaker than expected housing starts and building permits data. US Housing starts fell 10.2%, to the lowest levels in last fourteen years.

Copper also obtained weakness from slight ease in crude oil’s intraday highs and gold’s retreat from the day’s high.

LME warehouse copper stocks increased by 2600 mt to build 143,125 mt Wednesday.

The World Bureau of Metal Statistics disclosed global copper market was in a 41,000 mt surplus in August. However was in a deficit of 243,000 mt during January - August. World refined copper production in August was 1.489 million mt and consumption was of 1.448 million mt.

Copper may continue weak as buyers keep away from the market and LME warehouse stocks continue to build. Moreover in G7 meeting scheduled on Friday, steps are likely to be taken to restrict Euro’s record highs.

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 positive zone showing decreasing bullish momentum. Stochastic and RSI are falling in neutral region indicating weakness. Copper prices may continue weak during the session.   

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