17 Dec 2014
Copper extends decline as China output rises
FXStreet (Mumbai) - Copper futures trades almost unchanged in the mid-Asian session, extending losses from the previous session on concerns over increased Chinese output and on a stronger US dollar.
The red metal now trades modestly flat at USD 2.865/ pound, after having hit a low of USD 2.857/ pound in the Asian morning. The red metal remains pressured after refined copper production in China, the world's biggest market for the metal, rose 3.1 percent from the previous month in November, hitting a record for the fourth straight month. The prices are expected to slide further as Australia's Bureau of Resource and Energy Economics released forecasts of a worldwide copper supply surplus of 300,000 tonnes 2015, equivalent to half a year's output by South Korea. Investors also remained cautious amidst falling rouble as a depreciating ruble may attract Russian miners to increase their production levels. Russia is the world's sixth-biggest red metal producer.
Copper Technical Levels
Copper prices have an immediate resistance located at 2.886 (Dec 16 High), above which gains could be extended to 2.917 (Dec 1 High) levels. Meanwhile, support is seen at 2.844 (Dec 16 Low), below which it can extend losses to 2.80 levels.
The red metal now trades modestly flat at USD 2.865/ pound, after having hit a low of USD 2.857/ pound in the Asian morning. The red metal remains pressured after refined copper production in China, the world's biggest market for the metal, rose 3.1 percent from the previous month in November, hitting a record for the fourth straight month. The prices are expected to slide further as Australia's Bureau of Resource and Energy Economics released forecasts of a worldwide copper supply surplus of 300,000 tonnes 2015, equivalent to half a year's output by South Korea. Investors also remained cautious amidst falling rouble as a depreciating ruble may attract Russian miners to increase their production levels. Russia is the world's sixth-biggest red metal producer.
Copper Technical Levels
Copper prices have an immediate resistance located at 2.886 (Dec 16 High), above which gains could be extended to 2.917 (Dec 1 High) levels. Meanwhile, support is seen at 2.844 (Dec 16 Low), below which it can extend losses to 2.80 levels.