Copper Drops Nearly 3%, Resistance At 432.80
CommodityOnline | Jul 24, 2014 04:02AM ET
Copper inventories in Shanghai Futures Exchange warehouses rose 3.8 percent from last Friday to 84,453 tonnes, their highest in about a month.
Copper looks to trade in the range as nagging concerns about China's property sector and an influx of stocks to exchange inventories dimmed the price outlook for the metal.
Meanwhile, China’s exports grew by only 7.2% in June, and the country’s imports rose by 5.5%, both short of expectations.
China imported 350,000 mt of unwrought copper and copper semis in the month, down 7.9% and setting a low last seen in April 2013.
The global world refined copper market showed a 183,000 tonne deficit in April, compared with an 84,000 tonne deficit in March, the International Copper Study Group said.
Copper inventories in Shanghai Futures Exchange warehouses rose 3.8 percent from last Friday to 84,453 tonnes, their highest in about a month.
Overall though, LME stocks are near their lowest in nearly six years.
Outlook: Copper already dropped nearly -3% from the recent highs as nagging concerns about China’s property sector, but supportive data from China’s GDP and data from US are supportive the prices. Now technically market is getting support at 420.80 and below same could see a test of 413.20 level, and resistance is now likely to be seen at 432.80, a move above could see prices testing 440.40.
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