COPPER

FUNDAMENTALS

Copper prices at the LME turned back again on world economic growth concerns, rebound in the US dollar against the Euro and weakness in crude oil prices Tuesday.

The prices fell ignoring a small drawdown in LME warehouse copper stocks and overnight gains in equity markets. Copper reacted weak Tuesday, more seriously following below expected US November consumer confidence numbers.

LME warehouse copper inventories reduced by 400 mt to 187,000 mt Tuesday. Comex copper stocks remained unchanged at 17,981 st.

October copper production of Chile, the world’s biggest copper producing country, fell 2% on year to 481,944 mt from 491,996 mt in October 2006. During January-October copper production grew 4.8% on year to 4,584,243 mt from 4,373,895 mt a year earlier.

Copper may continue weak pressurized by concerns about the global economy’s growth.

TECHNICALS

Candlestick pattern is showing bearish sentiments. Copper prices have closed below short and medium term EMA’s showing weakness in the market. MACD is rising in negative zone showing decreasing bearish momentum. RSI is falling in neutral region showing weakness though Stochastic Oscillator is rising in neutral region indicating firmness. Copper may trade volatile with bearish inclination.

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