FUNDAMENTALS

Copper prices continued down during Wednesday’s session as Merrill Lynch came up with more than expected third quarter losses from collateralized debt obligations and sub prime mortgages thus renewing concerns of subprime market.

Moreover poor US existing home sales numbers, losses in equity markets, poor demand from physical markets weighed on copper prices. LME warehouse copper stocks however decreased by 150 mt to reach 151,375 mt.

General Administration of Customs of China revealed China’s refined copper and copper concentrate imports in Sep rose 46.2% on yr to 102,078 mt and 28.6% on yr to 271,610 mt respectively. Its refined copper and copper concentrate imports during Jan -Sep increased 98% on yr to 1.18 million mt and 26.8% on yr to 3,463,208 mt respectively.  China’s refined copper export in Sep fell 81.3% on yr to 4,290 mt and during Jan-Sep declined 59% on yr to 97,375 mt.

Its import of copper alloy and scrap in September increased 25.1% on year to 5971 mt and 6.1% on year to 561,253 mt respectively. China’s scrap copper imports during Jan-Sep rose 16.6% on year to 4,053,140 mt.

TECHNICALS

Copper chart is showing a downtrend of prices. Candlestick pattern are showing bearish sentiments are prevailing in the market. The prices have closed below short & medium term EMA’s showing weakness in the market. MACD is falling in negative zone showing bearish momentum in the market. Stochastic Oscillator has made a bearish crossover and falling in oversold region indicating weakness. RSI is also indicating weakness. Copper may trade volatile with bearish inclination during the session.  

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