Copper
is set to face some tough challenges and it doesn't matter anymore that
the prices are at four month lows. Situation has worsened even as
London Metal Exchange is closed for Easter. The calls that China will
adopt fresh measures to cool down the property markets can send ripples
to the Copper. Surge in global Copper stocks is another worry for this
metal. In another report, Codelco has declared force majeure in its
Radomiro Tomic Copper mine but that is downplayed by worries of Chinese
demand. Meanwhile, Commitment of traders latest report for week ending 26 March 2013 highlight tough days for Copper. The report showed that fund managers continued to increase their short positions. The total short positions gained by 4938 contracts taking total short contracts number to 52720. Long contracts showed a marginal increase of 620 contracts and were at 22684. Total net short positions therefore moved up by 79% to 30036 contracts.
MCX Copper is facing crisis like situation and the metal showed vulnerability to stabilize last week. The April contract slipped below Rs 400 last week to test levels of Rs 396.5 before recovering back quickly. The fall below Rs 400 has opened the gates for fresh shorts from current levels of Rs 408 per kg.
Source by Commodity Insights
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