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Copper May Trade Marginally Fall

ByCommodityOnline
Published 02/24/2014, 04:17 AM
Updated 05/14/2017, 06:45 AM


--Copper’s 3-month forward prices at the LME platform are trading down by 1% at $7074 while Shanghai copper is also trading lower by 1.40% at CNY 49850 MT. Likewise, COMEX copper for the March delivery is also trading down by over 1%. Copper prices at the MCX platform are likely to open lower by around 1% while losses could marginally lesser in India due to the rupee’s depreciation.

--The reason for the price fall in copper was noticed this morning as some of the banks in China tightened lending to the property sector. Along with copper all other industrial metal prices have traded down. Meanwhile, inventories in Shanghai are also rising continuously for copper, which might further pressure the price to trade down. Copper inventories tracked by the Shanghai exchange rose 13,770 tons to 194,111 tons last week.

--As stated above, copper prices at the Indian market may open down. We believe that, as the day progresses, the price action could stay meager, at least until before the European session opens. Later during the day, we have the German and euro-zone economic numbers. If the euro by any means shows a good correction, the metal’s prices may further correct lower. As we proceed further, during the US session, we have the Chicago Fed National activity index and the Dallas Fed manufacturing index. We believe that these data may weaken further, which can pressure the metals to trade lower during the US session. So, on the whole, we hold a bearish view on copper and recommend selling on pullbacks.

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