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Copper prices on major platforms recouped from monthly low last week, as the risk sentiments broadly revamped owing to retreating US dollar.

Global Economy

* Investors sentiments improved as investors re-examined the US central bank inflation stance and US infrastructure spending.

* Major equity indices were ended on a positive territory last week. U.S. Dow Jones index outperformed and finally closed with a gain more than 3.00 percent, leading European peers were on the higher side. China’s benchmarks SSE composite index gained more than 2.00% led by financial stocks . India's Sensex slipped 1.11 percent. Japan’s NIKKEI limited gains by 0.35%.

* Euro Zone business activity has surged at its fastest pace in 15 years in June.

* China’s industrial profits growth slowed on higher raw material prices. Profits rose to 36.4% in May, but way down from the previous release of 57% surge in April.

Currencies

* U.S. dollar eased in previous week after the index rose to two month high after US Fed policy makers hawkish monetary policy stance.

* Euro up by 0.62 percent against dollar. Chinese Yuan closed on a flat note by 0.03 percent gain, Japanese Yen ticked lower by half a percent against the US Dollar.

* Indian Rupee slipped as well last week by 0.15 percent against US dollar.

Copper

* Chilean lawmakers is looking to increase loyalties on the mining sector, as economy undergo through pandemic issues.

* LME Copper gained 2.93 percent while COMEX Copper gained 3.28 percent last week.

* Russia plans to impose USD 2.3 billion as export taxes on metal firms between August 01-December 31.

Copper prices regained momentum

Copper prices gained pace in last week on U.S. infrastructure deal, after the heavy selling witnessed this month as Fed’s signals monetary tightening. Additionally, Chinese crack down over rising raw material costs and low imports in the region increased pressure on prices.

US President Joe Biden brought about a bipartisan infrastructure deal value at USD1.2 trillion, which revamped global demand outlook in previous week . However, US Federal reserves mixed messages on inflation and China’s plan to auction metal reserves as part of curbing metal prices hindered the price sentiments. As part of that , Chinese administration reported that first round of such auction will be conducted on July second week, it includes 20,000 tonnes of copper.

Reopening global economies and its reviving plans from the coronavirus pandemic mainly in construction activities and renewable energy applications, including thermal, hydro, wind and solar energy remain to be the strongest fundamental for copper. Electric vehicle infrastructure and energy storage facilities as part of various governments effort to combat climate change likely to support prices on a broader angle.

The copper futures prices in LME platform surged nearly 3.00 percent during the last week and settled at USD9413.5 per metric tonne. COMEX copper futures marked a gain of 3.28 percent WoW and closed at USD4.299 per lbs previous week. Copper prices in SHFE closed at CNY68800 per metric tonne with a progress of 1.43 percent in the last week. Meanwhile, June futures in MCX marked a gain of 3.38 percent and closed at Rs.716.5 per kg.

Copper market in 19,000 tonnes deficit in Mar 2021 – ICSG

The global world refined copper market showed a 19,000 tonnes deficit in March, with respect to surplus of 108,000 tonnes in February, the International Copper Study Group (ICSG) said in its latest monthly bulletin.For the first 3 months of the year, the market was in a 129,000 tonnes surplus compared with a 154,000 tonnes surplus in the same period a year earlier, the ICSG said. World refined copper output in March was 2.10 million tonnes , while consumption was 2.12 million tonnes.

Russia plans to impose export taxes on metal firms between Aug 01-Dec 31

Russia is going to implement new export taxes on various metals including copper which will cost their producers USD 2.3 billion as part to safeguard its defence and construction industries from soaring raw material costs across globe.

Warehouse Inventory data

Copper inventories in LME registered warehouses increased by 31 percent and totalled 210975 MT. COMEX inventories decreased by 5.09 percent last week and totalled 50604 MT. Stocks in Shanghai registered warehouses decreased by 10.85.

Outlook: Broad trend remains on the positive due to easing global economic uncertainties and increased demand from the top consumer China. A weak U.S dollar continue to offer lower level support to the commodity.

COMEX: Expect a choppy trade initially, but a break of $3.80 is a sign of downside reversal.

MCX Jul: Prices continue to be volatile inside Rs 690-760 levels initially and breaking nay of the sides would suggest fresh direction to the commodity.

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