Angel Commodities- report on Copper
LME Copper prices fell from two year high levels as global risk aversion following intensified tensions between the US and North Korea weighed on the metal. The US warned that further threats from the country would be met with â€œfire and furyâ€ after North Korea said itâ€™s examining an operational plan for firing a ballistic missile toward Guam. However, sharp downside was restricted as steady Chinese producer price index (PPI) in July signalled towards optimism in the industrial activity although retail CPI was a tad lower at 1.4 percent. Also, LME Copper stocks fell for five consecutive sessions to 288,925 tonnes on Wednesday. Earlier this week, base metals jumped to record highsÂ after ChineseÂ rebar steel futures surged around 7 percent to their highest in moreÂ than four years andÂ China-s Shandong provinceÂ orderedÂ moreÂ than expected capacity cuts. MCX cop per prices traded lower by 0.1 percent to close at Rs. 413.6 per kg on Wednesday.
OutlookLME Copper prices are currently trading lower by 0.1 percent at $ 6451 /t. We expect Copper prices to trade sideways today as global risk aversion following fresh tensions between the US and North Korea will exert pressure.