COPPER / NICKEL ALL TARGET DONE 🏆🏆🏆 | Neal Bhai Reports. MCX Copper yesterday settled down by 2.98% at 760.5 after as the National Development and Reform Commission responded to the recent sharp increase in commodity prices, stating that commodity prices will gradually return to the fundamentals of supply and demand.
At present, the National Development and Reform Commission and the State Administration of Market Supervision are jointly investigating industry market conditions, and will take targeted measures to strengthen the supervision of the futures market and effectively maintain market stability.
Pressure also seen as rising inflation pushed investors into a risk-off sentiment, offsetting the impact of potential supply disruptions in the top producing region of South America. Chile’s Cochilco copper commission said that it was significantly raising its projection for the price of copper this year to $4.30 per pound.
In January, Cochilco had forecast a price of $3.30 for 2021, but said it was updating its projection because of expectations of a short-term deficit through 2022 of refined copper and a drop in inventories in warehouses tracked by the London Metal Exchange.
LME copper sank into a deep contango, indicating plentiful supply. The discount of LME cash copper to the three-month contract swung to $28.75 a tonne, the widest since June 2020, compared to a premium of $30 a tonne last month.
- MCX Copper trading range for the day is 732—777.
- Copper prices dropped after China’s NDRC stated that commodity prices will gradually return to the fundamentals of supply and demand.
- Pressure also seen as rising inflation pushed investors into a risk-off sentiment, offsetting the impact of potential supply disruptions in South America.
- Chile’s Cochilco copper commission said that it was significantly raising its projection for the price of copper this year to $4.30 per pound.
MCX Nickel Tips Today
MCX Nickel yesterday settled down by 3.75% at 1272.2 after China will strengthen management of both supply and demand sides to curb “unreasonable” increases in commodity prices and prevent the pass-through to consumers, the country’s cabinet said.
Pressure also seen on prices due to oversupply concerns. China’s Lygend Mining said its nickel and cobalt smelting project in Indonesia had produced first batch of nickel and cobalt hydroxide products which will gradually enter the global market.
Also, early in March, China’s Tsingshan said it would produce a large amount of nickel matte in Indonesia. Meantime, the commodity growing usage in lithium-ion batteries and the accelerated roll-out of electric vehicles remains a positive backdrop for markets.
China’s industrial production as well as fixed asset investment growth moderated, while growth in retail sales eased sharply in April as the initial boost from the relaxation of coronavirus containment measures in March faded.
Data published by the National Bureau of Statistics, on Monday, showed that industrial production grew 9.8 percent year-on-year in April, slower than the 14.1 percent increase in March but it in line with expectations. Retail sales climbed 17.7 percent annually, much slower than the 34.2 percent increase seen in March and the forecast of 24.9 percent.
Copper Nickel Trading Tips and Reports:
- MCX Nickel trading range for the day is 1245—1300
- Nickel prices dropped after China says it will stabilise commodity market, step up trade and stockpiling adjustment.
- Pressure also seen on prices due to oversupply concerns.
- China’s Lygend Mining said its nickel and cobalt smelting project in Indonesia had produced first batch of nickel products will gradually enter the global market.
Copper prices continued to pull back after hitting a fresh high earlier this week as China move to cool down the commodity prices and potential inflation concerns pressed industrial metals lower.
The non-ferrous metal maintained downside in the evening session despite worries about a strike in Chile and a softer dollar.
Copper delivery for May eased Rs 7.50, or 0.99 percent, to Rs 753 per kg at 19:51 hours with a business turnover of 3,509 lots. The same for June contract slides Rs 7.50, or 0.98 percent to Rs 757.85 per kg with a turnover of 2,030 lots.
The value of May and June’s contracts traded so far is Rs 2,774.25 crore and Rs 422.02 crore, respectively.
MCX METLDEX dropped 157 points, or 1.04 percent, at 14,901 at 19:52. The index tracks the real-time performance of key base metals.
“MCX Copper has been trading with negative bias and price declined approximately 30 points in the previous session and traded in the support zone of Rs 756-748. A marginal correction against the current downtrend has already been witnessed and the market made a high of Rs 766.7 which could get tested again in the evening session.”
LME supplies for copper are in marginal surplus for the day which may support the bearish move.
The Yangshan copper premium which reflects Chinese demand for the imported metal, rose for the first time since February on Monday to $38.50 a tonne, rebounding from a more than five-year low of $37 a tonne hit last week.
Copper, the leader metal, touched record higher levels across exchanges on the back of a tighter supply market, increasing investments towards the green revolution and revival of global economies earlier in the week.
“Global industries vouching to curb carbon emission has kept the entire industrial metals spectrum on the dais. With the world moving towards a greener environment amid the noteworthy expansion in the Electric Vehicle segment, demand for industrial metals is set to multiply in the years to come”, said Yash Sawant, Research Associate, Angel Broking Ltd.
The US dollar slumped to 89.86, down 0.36 percent in the evening session against the rival currencies.
The non-ferrous metal has been trading higher than 50, 100 and 200 days’ moving averages but lower than the 5 and 20 days’ moving average on the daily chart. The momentum indicator Relative Strength Index (RSI) is at 49.96, which indicates neutral movement in prices.
At 14:35 (GMT), the reddish-brown metal price fell 0.55 percent to quote at $10,018 per tonne in London.
MCX Copper price is expected to trade in a bearish trend with resistance at Rs 763 level and intermediate resistance at Rs 759 level, said Motilal Oswal. The brokerage advised its clients to sell on rallies targeting lower support at Rs 753-750 zone.
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