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Firmer Industrial data from US and China helped the rise Copper prices last week. LME copper posted best weekly gain since February.

LME Copper rallies to 7-week high

Copper price on major platforms surged on improved demand prospects after solid economic data from US and China. However the numbers from China, the biggest consumer of metals, were a mixed bag, with factory activity growing strongly but below forecasts and expected to slow in the near term.

The copper futures prices in LME platform surged by 3.19 percent during the last week and settled at USD9211 per metric tonne. COMEX copper futures gained by 3.20 percent WoW and closed at USD4.18 per lbs last week.

Copper prices in SHFE closed at CNY68680 per metric tonne with an advancement of 3.00 percent in the last week. Meanwhile, most active futures in MCX marked a gain of 2.82 percent and closed at Rs.709.30 per kg.

China’s downstream Copper consumption rebounded seasonally in March

China’s copper semis output in March stood at 1.84 million mt. The cumulative output from January to March was 4.49 million metric tonne, an increase of 2.48 percent year-on-year due to a low base in the same period last year. Operating rates at copper semis producers stood at 73.03 percent in March, an increase of 20.73 percentage points from the previous month, compared to an expected rise of 3.65 percentage points, and an increase of 8.82 percentage points year on year.

Copper market in 24,000 tonnes surplus in Dec 2020 - ICSG

The global world refined copper market showed a 24,000 tonnes surplus in December, compared with a 93,000 tonnes deficit in November, the International Copper Study Group (ICSG) said in its latest monthly bulletin. For the first 12 months of the year, the market was in a 559,000 tonnes deficit compared with a 383,000 tonnes deficit in the same period a year earlier, the ICSG said. World refined copper output in December was 2.11 million tonnes , while consumption was 2.09 million tonnes.

Copper Warehouse data

Copper inventories in LME registered warehouses decreased by 0.15 percent last week to 165375 MT. COMEX inventories decreased by 1.48 percent last week and totalled 68877 MT. Stocks in Shanghai registered warehouses increased by 4.60 percent and totalled 202464 MT.

Outlook:

Broad trend remains on the bullish side due to easing global economic uncertainties and expectations over increased demand from the top consumer China. A weak U.S dollar and hints of over further economic stimulus measures continue to offer lower level support to the commodity.

COMEX: Though the broad trend remains positive there are chances of choppy trading ahead. A direct drop below $3.4 is a sign of weakness.

MCX Apr: As long as prices stay above 648 there are chances of recovery upticks in the counter. However a direct drop below 585 is sign of reversal of the current momentum.

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