Technical Comment For The Day: Copper

Copper recovered sharply and tested a one week high on the back of high liquidation of short positions. The open interest has dipped continuously in the last three sessions. The pickup in volumes to 71541 kgs, also justified that the rise in metal. MCX Copper August expiry contract closed at Rs 421.5 per kg, up 2.5%. Further rise of metal towards Rs 425 is highly likely in today's session. Earlier in the month, Copper has managed to test the resistance of Rs 425 but failed to surpass it. On LME, Copper was up by 1.6%, at $ 6920 per tonne. The next support for the contract is at $ 7000 per tonne.

Source by Commodity Insights

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Copper.........

The resistance of Rs 413 and Rs 414 per kg again proved too stiff for Copper to breach on Tuesday. The metal remained in green but managed to close with minor gains of 0.09% to Rs 411.2 per kg. The prices are likely to remain trading in the same manner as they did on Tuesday. The range of Rs 414 and Rs 409 is active at the moment in Copper. Open interest in the metal was down by 7786 contracts to 25834 contracts on 30 July 2013. However the volumes were up reaching 53437 kgs in the August contract. This indicates that traders tried to settled their respective short positions before the key decisions from US.

Source by Commodity Insights

China Copper Concentrate Imports Rise In June

Copper.....
China reported a sharp rise in Copper concentrate imports for the month of June. Even on a half yearly basis, imports showed a sharp upswing. The data released from General Administration of Customs showed that China Copper concentrate imports were 673518 tonnes, up 40.23 percent in June, compared to same period last year. The total imports in the month of January-June 2013, was 4463111, up 32 percent.
On LME, benchmark prices were trading at $ 6981 per tonne, shy away from resistance of $ 7000 per tonne. MCX Copper August expiry was trading at Rs 416.6 per kg, up 0.5 percent.
Source by Commodity Insights

Oyu Tolgoi Has Started Shipping Copper Concentrate To Customers

Copper......

Oyu Tolgoi has started shipping copper concentrate to customers from its copper and gold mine in Mongolia. The shipping of concentrate is the culmination of a three-year, US$6.2 billion project to build the first phase of one of the world's top five copper mines.
Rio Tinto Copper chief executive Jean-Sebastien Jacques said “It has taken the vision and hard work of thousands of people to get to this point, where we are starting to convert the rich resources beneath the desert into real wealth and opportunity for all stakeholders, including the Mongolian people.
“Oyu Tolgoi starts production at a time when undeveloped quality copper assets are scarce and the outlook for copper continues to be strong. With continued development, Oyu Tolgoi will generate wealth for many decades to come.”
All permits for exporting copper concentrate are in place, together with Oyu Tolgoi Board approvals, and authorities required for continued concentrate sales. Oyu Tolgoi remains committed to maintaining transparency in its operations and managing export revenues consistent with the Investment Agreement.
Source by Commodity Insights

Indian Copper Opened Lower, China Demand Uncertainty Continues

Copper......

Copper opened lower on MCX as was expected. The markets continued to remain trading in disparity from its foreign counterpart LME. The LME three month prices were trading at $ 6727 per tonne, up from $ 6715 per tonne. Meanwhile, MCX Copper June contract was seen trading at Rs 407.7 per kg, down 0.27 percent. The rise of Rupee is the cause of decline in Copper. Indian Rupee was last seen exchanging hands at 60.53 against the Dollar, up from 60.72 on Wednesday. Dollar was at 1.3022 against the Euro. Excessive credit growth in China has made markets nervous and calls of reassurances from Peoples Bank of China have been taken lightly by the traders. Chinese premier bank said this week that it was providing short term assistance to institutions that were facing cash crisis. Source by Commodity Insights

Inventories of Copper Are Now At 10 Years High

Copper........

Copper inventories ticked to 10 year high on Monday reaching 678225 tonnes. This is a cause of worry for the markets which is already carrying the burden of slack Chinese demand. Three-month copper futures turned lower on the London Metal Exchange, with losses in Shanghai shares Tuesday fueling selling, as concerns about China's cash crunch rattle investors.
LME three month prices of Copper were seen at $ 6625 per tonne, compared to $ 6675 per tonne. Indian Copper prices suffered the same fate as its International counterpart. The prices declined to Rs 400.8 per kg, down Rs 8. Supports for the contract are at Rs 395 and 393 per kg.
Last week, COMEX Copper fund managers, Commitment of traders (CoT) report showed heavy rise in short positions while there was minor increase of long positions by hedge fund managers. The total short positions increased by 11209 contracts taking total short contracts number to 55896 contracts against 44687 contracts in the previous week.
In US economic news, the Federal Reserve Bank of Philadelphia said late last week that its manufacturing index rose to 12.5 in June from -5.2 in May, well above expectations for a -2.0 reading.
A separate report showed that U.S. existing home sales climbed 4.2% to 5.18 million units in May from April's total of 4.97 million, far surpassing market calls for a 0.6% increase. Bank Of Japan said that Japan's corporate services price index rose by a seasonally-adjusted 0.3% last month following a -0.3% reading in April.
Source by Commodity Insights

Copper Goes Down Begging For Mercy From Sellers

Copper.............
LME and MCX prices of Copper have come down begging for some respite as selling pressure mounted after a series of bad data from world markets last week. The rise in ICSG Copper surplus and fall in Chinese imports was already been handled by the markets but the news of money managers sharply increasing their short positions killed all chances of bottom fishing.
After the week ending 11 June 2013 the second week in the row turned out to be in favor of bears. The week ending 18 June 2013 highlighted that the short positions were increased significantly.
COMEX Copper fund managers, Commitment of traders (CoT) report showed heavy rise in short positions while there was minor increase of long positions by hedge fund managers. The total short positions increased by 11209 contracts taking total short contracts number to 55896 contracts against 44687 contracts in the previous week.
CoT report showed that long contracts increased by 914 contracts and were at 26887 contracts from 25973 contracts a week before. Total net short positions therefore moved up by 55 percent to 29009 contracts from 18714 contracts a week before.
LME copper three month prices was trading below $ 6800 per tonne on account of worries on Chinese demand outlook. Most active Copper contract on MCX was trading at Rs 401.2 per kg, down 1.6 percent from last week. Resistance for the contract is at Rs 405 per kg. Downtrend can take copper towards Rs 398 per kg.
Source by Commodity Insights

Copper Crushed Below $ 7000 On Wednesday Trades

Copper.......

Copper crushed below $ 7000 per tonne on Wednesday as the weight of FOMC decision seemed to be taking the toll on the metal. Federal Reserve Chairman Ben Bernanke will be speaking on the plans of monetary stimulus programme. LME metal three month prices of Copper were trading at $ 6998 per tonne when last checked which almost a two month is low for the metal.
Indian Copper futures ended the trading at Rs 410.1 per kg, up 0.16 percent. The prices tested a high of Rs 412.7 per kg and a low of Rs 408.6 per kg. The metal is expected to open lower considering the slowdown in LME and fall in Dollar against the Indian Rupee. INR was trading at 58.73 against the Dollar, up 0.07 percent.
Meanwhile, Central bank in China has said that there will not be any policy loosening. People's Bank of China (PBoC) Tuesday drained 2 billion yuan from the money market despite banks' reported call for cash injection, suggesting regulators are keen to keep liquidity tight amid growing jitters of China's financial risks. The 2-billion 91-day bills, though tiny by amount, were viewed as the central bank's commitment to squeezing out excessive funding.
China manufacturing data is also keenly watched by the traders as that will show the state of affairs in terms of demand for metals. In fundamental news, the possible restart of mining operations at Freeport Indonesia's Grasberg mine could pare the supply disruption premium factored into copper prices
Source by Commodity Insights

Copper Pares Some Losses, Decisive Move Will Come After Fed Meet

Copper.....

Copper pared some losses by the end of ring trades on LME but still lacked he confidence to end in green. The data from US soothed the nerves and helped in recovery. It is the Federal Reserve meet that is watched more keenly by the speculators. In economic reports, business conditions index rose to 7.84 in June from -1.43 in May, beating consensus forecasts of an increase to zero.

Meanwhile, Dollar remain whopping between losses and gains against the Euro. The greenback ended at 1.3361 per Euro, down 0.11 percent. The clarification from Ben Bernanke on the bond purchases might give some strength to the US Dollar. Rupee remained struggling against the Dollar and settled near all time lows at 57.85 against the Dollar.

One concern that has mitigated in recent times is the supply of Copper. Earlier, it was said that the Grasberg mine of Freeport will hit the supplies. However, restart of Sterlite industries Tuticorin Smelter will address that issue. The smelter was shut down from March 2013 from emission concerns.

Inventories data showed a rise of 11400 tonnes in LME Copper warehouses. Stocks have reached 629475 tonnes. Inventories have gained by more than 90 percent in 2013.

LME Copper three month prices closed at $ 7065 per tonne, down $ 20 per tonne. A decisive move will come in the metal only after Federal Reserve Committee meet. MCX Copper settled at Rs 409.45 per kg, up 0.37 percent. The metal tested a high of Rs 412.2 per kg and a low of Rs 407.1 per kg. Resistance for the contract is at Rs 414 per kg while support is at Rs 408 per kg.

Source by Commodity Insights

Copper Tries Go Gain Momentum After Slack Thursday Trades

Copper.......

Copper is trying to gain momentum after a slack Thursday trades that has taken the prices to a six week low. The metal closed at $ 7093 per tonne, down $ 27 per tonne. The prices are trading with gains in Asian trades on Friday at $ 7121 per tonne.
US Dollar was trading higher against the Euro at 1.3346, up 25 pips. Indian Rupee was trading a bit higher after the all time lows brought some bottom fishing in the metal. The Rupee was trading at 57.72, down 0.37 percent.
Indian Copper prices ended at Rs 408.3 per kg, down 0.78 percent. Battery material lead was the most underperforming metal in the pack with prices paring 1.2 percent to close at Rs 120.95 per kg.
Shanghai Copper benchmark prices were still trying to mitigate with losses with prices at 51700 yuan per tonne, down190 yuan per tonne. This is the second straight day when Copper has opened in losses in China after resuming trades.
In economic report, the U.S. Commerce Department said retail sales rose 0.6 percent last month after rising just 0.1% in April. Economists expected an increase of 0.4 percent. Core sales excluding automobiles, gasoline and building materials, rose 0.3 percent in May after 0.2 percent increase in April.
The Labor Department said initial claims for jobless benefits fell by 12000 last week to 334000. The less volatile four-week moving average fell by 7250 to 345250.
Source by Commodity Insights

Copper Down For Fifth Straight Session

Copper........

Copper declined for the fifth consecutive day on Wednesday on the speculation that the US Federal Reserve will not be continuing with its stimulus plans. The outlook of demand from China also posted big pressure on the prices. LME three month prices were last seen trading at $ 7064 per tonne, compared to $ 7070 per tonne on Tuesday. The metal declined by $ 80 per tonne last night. On MCX, Copper was stable until the evening trades but reversed all the gains and chopped 1.5 percent of its value to end at Rs 410.8 per kg. The metal tested a high of Rs 421.5 per kg and a low of Rs 410.6 per kg. Inventories of Copper were at 609250 tonnes on 11 June. The total stockpiles have increased by 90.3 percent on Monday. The worries of heavy stocks of Copper were tamed a bit after the report of Force Majeure in Freeport Grasberg mine. The mine is expected to restart in about three month's time and till that period the supplies will remain disrupted. Refined Copper markets showed a production surplus of 40000 tonnes in February 2013, this was due to low refined metal demand. RBI intervention has given Indian Rupee some leg space. The domestic currency was sharply moving downwards until last night and tested a record low of 58.38 against the US Dollar. RBI purchases of Rupee have brought some gains in early Asian trades. The currency was trading at 58.24 per Dollar. Other metals like Nickel also faced a sharp contraction when prices slipped to $ 14550 per tonne, down $ 395 per tonne on Tuesday. MCX Nickel was the worst performer in the base metals pack, ending at Rs 844.1 per kg, down 2.7 percent. Source by Commodity Insights

Copper Drops More Than 2% Today

Copper...........

Copper has so far declined by 2.3 percent after the weakness shown in the export figures of China. LME Copper was seen trading at $ 7138 per tonne, down $ 177 per tonne. MCX Copper June expiry was trading at Rs 415 per kg, 0.44 percent.
China's industrial output rose by a less-than-forecast 9.2% in May from a year earlier, while consumer prices fell more-than-expected. The report from National Bureau of Statistics in China showed that Chinese exports rose at the slowest pace in almost a year in May, up 1%, well below expectations for gains of 7.3%. Imports unexpectedly fell last month, dropping 0.3%, compared to expectations for a 6% rise.
The data from Chinese imports didn't support the fate of Copper. The data has shown that China unwrought Copper and Copper product imports have appreciated by 21.3 percent to 358672 tonnes in May 2013 compared to 295799 tonnes in April this year. The decline in imports on a yearly basis spoiled the mood of the traders. Chinese imports declined by 14.5 percent on a yearly basis from 419741 tonnes in May 2012.
Among other metals, LME Aluminium inventories jumped by as much as 18750 tonnes in the single day on 9 June 2013. Imports of unwrought Aluminium in China were 72662 tonnes in May, up 13.3 percent from 64134 tonnes in April 2013. Imports declined by 20.2 percent from 91083 tonnes in May 2012.
The LME Aluminium prices have moved down by $ 40 per tonne to $ 1928 per tonne. MCX Aluminium didn't follow the footsteps of its counterpart and was up 1.2 percent mainly due to decline of Rupee to all time lows against the Dollar. Rupee was trading at 58.14 when last checked, up 1.9 percent.
Steel makers have continued to face depressing times in terms of demand. The slowdown in demand is troubling major Chinese steel makers. China steelmaker Baosteel has again decided to decline the prices of its products for July booking.
Baosteel will cut July prices of hot-rolled coil mainly for manufacturing by 200 yuan ($32.61) a tonne and for cold-rolled coil, principally for autos and domestic appliances, by 200 yuan a tonne.
Source by Commodity Insights

Commodities Buzz: MMC Norilsk Nickel Approves Dividends

Nickel.......

OJSC MMC Norilsk Nickel, the largest global nickel and palladium producer, announces today that its Annual General Meeting of Shareholders (the AGM) approved the consolidated 2012 IFRS financial reports and dividends for the year in the amount of RUB 400.83 per ordinary share. Shareholders also approved reduction of the share capital by RUB 13,911,346 to RUB 158,245,476 by cancellation of 13,911,346 ordinary shares (8.08% of the share capital).
Source by Commodity Insights

Copper Prices Move Down On Demand Concerns

Copper.....
Copper prices moved down on demand concerns in major economies although China Jinchuan Group declared Force Majeure at the Copper plant. After Freeport Closure, Jinchuan becomes the second plant that has declared stoppage.
China's Jinchuan Group said that it is due to equipment failure and is likely to reduce Copper supply by 50% in the next few months. The country's third-largest copper producer by output has sent out a notice to its buyers, notifying them of the possible supply disruption.
The force majeure would translate into a short-term supply disruption of 20,000 tons a month in the domestic market, given that Jinchuan typically contributes 40,000 to 50,000 tons of refined copper a month, industry participants said.
Meanwhile, Copper prices remained moving down on the concerns that demand will remain under pressure both in China and other major consumers like Europe and US. LME Copper was trading at $ 7355 per tonne, down $ 105 per tonne. Copper inventories were down by 1925 tonnes to 610375 tonnes.
Indian Copper was trading at Rs 419 per kg, down 1.3 percent. The metal has tested a opening high of Rs 423.7 per kg and a low of Rs 418.5 per kg when last checked.
LME Nickel prices were seen extending their losses on the back of heightened profit booking after a rise that took prices to a fortnightly high. LME Nickel was seen at $ 15033 per tonne, down from $ 15335 per tonne. Nickel has been one of the metals that has suffered losses of 28.5 percent this year.
Source by Commodity Insights

Lead Gallops Higher

Lead.......

Lead prices are galloping higher on account of recovery in China PMI from official sources. The data showed a rise of 50.8 in May compared to 50.6 in the month of April. The three month lead prices were last seen trading at $ 2217 per tonne on Monday, up 1.4 percent.
Lead has been in the news these days for all the right reasons. The inventories of lead have been moving down while the demand from automobiles has resulted in spot prices jumping up. The spot prices of lead have been running at a premium of $ 8 per tonne against three month prices. The spot prices were last seen at $ 2224 per tonne.
LME Lead inventories have been down by 31 percent this year and this is one metal that has seen a considerable drawdown in warehousing inventories compared to some of the other big names like Copper and Nickel.
Indian Lead futures were trading at Rs 125.6 per kg, up 1.17 percent. Though the prices are in a overbought zone they can seen some more recovery towards Rs 126-127 per kg.
Source by Commodity Insights

Copper Is Likely To Get Underpinned By Chinese PMI

Copper............

Copper prices are likely to get underpinned by Chinese PMI data. The data released last night had shown that official Purchase Manager's Index rose to 50.8 in May compared to 50.6 in the month of April. This reading is also stronger than expectations of 50.1 figure. Metals are expected to open with a positive undertone in India.
Meanwhile, Fund managers has been staying away to take any fresh long positions in the COMEX Copper contracts. The report showed that the short positions were declined but that decline didn't shift to a material increase in long positions.
COMEX Copper fund managers, Commitment of traders report for week ending 28 May 2013 showed decline in the short positions while there was concurrent minor decrease of long positions by hedge fund managers. The total short positions declined by 899 contracts taking total short contracts number to 36038 contracts against 36937 contracts in the previous week.
COT report showed that long contracts decreased by just 728 contracts and were at 27120 contracts from 27848 contracts a week before. Total net short positions therefore moved to 8918 contracts from 6158 contracts on 21 May.
LME Copper settled at $ 7270 per tonne on Friday, against $ 7275 per tonne last week. Most active Copper contract on MCX closed the last week trading at Rs 411.85 per kg, down 1 percent in the week. Resistance for the contract is at Rs 414 per kg. Downtrend can take Copper towards Rs 408 per kg.
Source by Commodity Insights

Copper Dwells Between Profits And Losses

LME Copper dwelled in profits and losses after the European trades. The prices were lower in Asian session but a minor pickup has been noted in the opening of European markets. Last night the calls of fall in China GDP brought pressure on the benchmark prices. When last seen Copper was trading at $ 7260 per tonne, up $ 25 per tonne. MCX Copper opened at Rs 410.5 per kg and was at Rs 411.5 per kg when last checked. The prices tested a intra day low of Rs 405.1 per kg before recovering.
Source by Commodity Insights

MCX Weekly Wrap Up: COMDEX Up Marginally

MCX Comdex was up by 1.23% to 3565.36 for the week till Thursday. MCX Metal was up by 1.55% to 4448.04 and MCX Energy was up by 0.75% to 3679.80.

Bullion:
Gold June 13 contract was up by 1.18% to Rs 26440.00 per 10 grams, GoldM July 13 contract was up by 1.29% to Rs 26542.00 per 10 grams, Goldguinea July 13 contract was up by 1.25% to Rs 21307.00 per 8 grams, GoldPetal July 13 contract was up by 1.45% to Rs 2663.00 per gram and GoldPetalDel May 13 contract was up by 2.53% to Rs 2757.00 per gram. Silver July 13 contract was up by 0.71% to Rs 43571.00 per kg, SilverM June 13 contract was up by 0.68% to Rs 43591.00 per kg, SilverMIC June 13 contract was up by 0.68% to Rs 43594.00 per kg and Silver1000 June 13 contract was up by 0.68% to Rs 43591.00 per kg.

Metals:
Aluminium July 13 contract was up 2.55% to Rs 104.55 per kg, alumini July 13 contract was up 2.20% to Rs 104.30 per kg, lead May 13 contract was up by 4.12% to Rs 113.65 per kg, lead mini May 13 contract was up by 4.12% to Rs 113.65 per kg, zinc July 13 contract was up by 2.80% to Rs 104.35 per kg, zinc mini July 13 contract was up by 2.81% to Rs 104.35 per kg, nickel July 13 contract was up by 1.96% to Rs 846.00 per kg, nickelm June 13 contract was up by 1.97% to Rs 837.90 per kg, copper June 13 contract was up by 1.99% to Rs 408.45 per kg and copperm June 13 contract was up by 1.99% to Rs 408.45 per kg while Steel RPR June 13 contract was down by 2.16% to Rs 27630.00 per MT.

Energy:
Natural gas May 13 contract was up by 9.88% to Rs 236.80 per MMBTU while Brent crude oil June 13 contract was down by 0.54% to Rs 5683.00 per barrel and Crude oil June 13 contract was down by 0.48% to Rs 5215.00 per barrel.

Source by Commodity Insights

LME Metals Prices- 20 May 2013

Source by Commodity Insights

Copper Recovering Well On MCX

Copper.........

Afternoon trades have seen smart recovery in MCX Copper prices on the back of strong sentimental rally in the LME. Copper

three month prices on LME pushed itself to a level of $ 7320 per tonne, compared to close of $ 7125 per tonne a day before.

The downside risks were mitigated by the fact that Federal Reserve officials announced that they will be binding the stimulus measures by the end of this year. This has given hopes that economy of US is recovering and there will be elevation in the demand.

However, China still remains a worry for the metals. China consumes 43 percent of World Copper. The imports have been dwindling down and the rise of surplus is a big worry.

Meanwhile, Indian prices cheered the brief rally in metals and were trading at Rs 405 per kg, up 1.1 percent in the mid afternoon trades. The rally is expected to limit itself near Rs 407 per kg which is the next resistance level for the contract.

Source by Commodity Insights