US copper futures reversed to close lower Friday, feeling the heavy hand of the strong dollar and chart-based pressure, while demand concern in China and India's interest rate hike also gave pressure, dealers said. Copper for May delivery closed down 2.30 cents at $3.3725 per lb on the New York Mercantile Exchange's COMEX division. Range from $3.3640 to $3.4110.
COMEX estimated copper futures volume at 168,004 lots by 1 pm EDT (1700 GMT). US copper futures saw strength earlier in the session on signs of economic growth in the United States, the world's biggest economy - traders. Strong resistance at $3.4250, basis May, and chart-based selling, amid heavy pressure from the sharply higher dollar, pushed the market lower - traders.
"Mostly technical trade today." - Sterling Smith, analyst for brokers Country Hedging Inc in Minnesota. Copper scrap shipments to China may fall in April as a new customs rule to fight duty evasion takes effect and demand falls as the government tries to cool a construction boom.
Deliverable copper inventories in warehouses monitored by the Shanghai Futures Exchange rose 9 percent from one week earlier, while deliverable aluminium inventories rose 2 percent - exchange. India's central bank raised its short-term borrowing and lending rates by 25 basis points each and said the measure was intended to anchor inflationary expectations and check price pressures.
"Copper's very sensitive to that." - Smith. London Metal Exchange copper warehouse stocks fell 1,200 tonnes to 522,975 tonnes as of March 19. COMEX copper stocks down 112 short tons to 101,723 short tons as of Thursday. LME copper closed at $7,435 per tonne, down from $7,486 per tonne at the close of Thursday.
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