Copper MCX settled up 1.58% at 421.90 tracking firmness from LME Copper which gained 1.6 percent to settled at $6,586 a tonne as support seen after investors continuing to bet that Chinese economic strength and lower supplies will buoy base metals.
With limited access to the giant Grasberg copper mine in eastern Indonesia is expected to resume on Monday, its operator said. While protesters in Peru have removed barriers on a road used by MMG Ltd to move its copper concentrate from its Las Bambas mine to port for shipping.
Although the International Copper Study Group reported a seasonally adjusted supply surplus for May on Friday, many investors and trader think supply will tighten in the future while demand growth stays steady.
China, which accounts for almost half of the world’s copper consumption, has posted better-than-expected economic growth figures so far this year, though some traders are caution that a second-half slowdown could send copper prices lower.
Also investors are concerned that much of the recent copper rally is being driven by speculative investors. Net bullish bets on a higher copper price by hedge funds and other speculative investors have set new all-time highs each of the last three weeks, according to CFTC data going back to 2006.
In the week ahead, investors will be looking ahead to speeches by central bankers at the Fed’s annual central bank symposium in Jackson Hole, Wyoming. Investors will also be watching U.S. data on housing and durable goods to gauge how it will impact on Fed policy, while the euro zone is to release data on private sector activity.