MTECHTIPS;-Copper Is Supported by Weak Dollar and China scrap ban in
MTECHTIPS;-Copper Is Supported by Weak Dollar and China scrap ban in Medium Term
MTECHTIPS- Copper prices rose to their highest level in more than two years in July 2017, on optimism that accelerating growth in Asia and Europe will stoke demand for the industrial metal. Copper is hovering near a two-year high in reaction to a weaker dollar which is making the industrial metal more attractive to foreign buyers. Tight supply forecasts are also helping to boost prices. In COMEX, there is plenty of room to the upside with $2.8495 the next major upside target. The fundamentals aren’t strong enough at this time to trigger a fast move into the upside target, however. What it indicates is that if the rally fails, it won’t be because of resistance, but because buyers pulled their bids. China is the world’s largest copper consumer accounts for almost 45% of the global demand. However, the country isn’t self-sufficient regarding its copper needs. China is the world’s largest copper importer. Notably, copper’s dynamics are different from some of the other metals like steel and aluminum where China controls more than half of the global supply. Chinese imports of refined copper dropped in June and are down 18% over the first half of 2017 to 2.23 m tonnes, shipments of copper concentrate continue to strengthen jumping 23% in June from the month before to 1.41 m tonnes. Copper is getting fillip after the International Monetary Fund increased its growth expectations for China in 2017 and 2018, while leaving its forecast for the global economy unchanged and trimming its forecast for the US. The IMF also raised its growth estimates for Europe and Japan. Indian markets are witnessing Copper in a range of Rs 400-414 per kg. Breaking this range on the higher side would mean Copper charging towards Rs 450 per kg range.
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