Copper prices settled flat undermined by concerns over weakening demand and oversupply. BHP Billiton said it had lifted a declaration of force majeure at its Escondida copper mine in Chile. Chilean government data showed Tuesday the country’s copper production slid 1.8% year-on-year in April due mainly to strike at the Escondida copper mine. Chilean copper output was 429,241 tonnes in April, compared to 436,902 tonnes in the same period of last year.
Chilean President Michelle Bachelet said Thursday she had required mining organization which includes Codelco to mulling over constructing a new copper smelter to increase value-added to copper exports. China’s manufacturing sector contracted for the first time in nearly a year in May, survey data from IHS Markit showed. The Caixin factory Purchasing Managers’ Index fell to 49.6 in May from 50.3 in April. The reading declined below 50 for the first time in eleven months, signaling a contraction in the sector.
Chinese manufacturers reported a further rise in production in May. That said, the pace of expansion was the weakest in the current 11-month sequence and only slight. Investors are keenly awaiting Friday’s U.S. non-farm payrolls report, which could set the dollar’s tone in the short term.
Technically market is under long liquidation as market has witnessed drop in open interest by -0.14% to settled at 15511, now Copper is getting support at 366.5 and below same could see a test of 364.1 level, And resistance is now likely to be seen at 370.6, a move above could see prices testing 372.3.
*Copper trading range for the day is 361.50 – 370.60. Possible to Touch 362 and Down
*Copper prices settled flat undermined by concerns over weakening demand and oversupply.
*BHP Billiton said it had lifted a declaration of force majeure at its Escondida copper mine in Chile.
*A survey showed China’s manufacturing activity unexpectedly contracted in May for the first time in 11 months.