MTECHTIPS;-MCX Copper may trade range bound amid weak global cues

MTECHTIPS;-MCX Copper may trade range bound amid weak global cues

Copper futures for June delivery on India's Multi Commodity Exchange (MCX) is expected to trade in a range and traders are advised to take positions accordingly.“Support for the base metal is seen at 404. If futures break and sustain below 404 level, then the commodity has next support at 400 level. On the upper side, resistance is seen at 410.5 and 413 levels,” said Tarang Parmar, Research Analyst at Commodity Online.MCX copper for June delivery was seen trading down by 0.17% at Rs.407.15 per kilogram as of 02.34 PM IST on Monday.Copper prices in both domestic and international market traded down as Chinese political leaders opted for slower growth that may curb demand for the base metal.Last week, China’s President Xi Jinping said that, the country would not opt short term growth by sacrificing the environment. Also, China government is not ready to add any stimulus to reach higher economic growth.In the first quarter of 2013, profit of Chinese non-ferrous metals mining companies declined 3.5%. Also, the profit of smelting companies fell 8.3 % when compared to the last year, according to the data released by National Bureau of Statistics.Tightness in scrap may limit this year’s surplus by partially offsetting the increase in mine supply and tepid end-demand, stated London based Barclays in its recent market report.Just when the market was getting bearish on copper because of stronger supply, supply started to tighten. Chinese smelters, which over the years have grown increasingly reliant on scrap as a raw material source, have been hit the hardest, with Jinchuan this morning stating its refined copper production could fall 100Kt this year because of the scrap shortage.

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