COPPER

FUNDAMENTALS

Copper prices rebound on Wednesday following worries about possible supply disruptions as a 5.8 magnitude earthquake hit Northern Chile. Chile is the world’s major producer of copper. Comex December delivery copper added 2.7cents to settle at $ 3.114 per pound on Wednesday.   

The upsurge was however restricted by increase in in LME warehouse copper inventories, firmness in dollar and weakness in crude oil prices. The prices were also restricted by release of China’s copper imports data.  LME warehouse copper inventories increased by 1725 mt to build 203850 mt on Wednesday.  

The General China Administration of Customs disclosed its preliminary data shows Chinese import of copper, copper alloy and semi finished products in August fell to 178,047 mt from 186,136 mt imported in July.  China’s total copper imports during January-August fell 12% on year to 1.69 million mt.

TECHNICALS

Copper price continues to close below 9 day and 18 day EMA thus supporting weakness. MACD is moving downwards in negative zone, revealing increasing bearish momentum in the market. RSI’s move upwards in neutral region is indicating firmness. Stochastic oscillator has made a bullish crossover in oversold region indicating recovery. Copper price is likely to move volatile during the session. 

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