COPPER LOSSES GROUND ON LACK OF SUPPORT FROM US AND ANXIETY OF
CHINESE IMPORTS
Date: 09/04/2012
Copper has lost quite a few ground on account of weak employment figures of US and expectations of moderate growth in Chinese import numbers. The speculation regarding Chinese imports due to be released this week is high. Any dismal show on import front by China will take on whatever little incentive is left in the markets of metals. The US data showed lower recovery in job numbers during March. The US unemployment numbers are lingering at 8.2%.
Last month, a sharp jump in most of the metals production was noted in China. The resumption of trades after the spring festival in January boosted February imports. Unwrought Copper imports of China were up by 17% on a month on month basis in February. The total Chinese refined Copper production was up by 437000 tons, up 9.5%.
MCX Copper benchmark contract which was trading at R 425 per kg, down 1.3% is looking to contract further in coming trading sessions this week. The contract likely respite can be at R 421 per kg, breaching this support Copper can see some more slide towards R 416 per kg.
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