Copper Up After Chile Tightened Its Lockdown Over A Spike In COVID-19 Infections

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Copper Up After Chile Tightened Its Lockdown Over A Spike In COVID-19 Infections

Copper yesterday settled up by 0.91% at 695.6 after Chile tightened its lockdown over a spike in COVID-19 infections, with several new variants circulating. However upside seen limited amid rising inventories and falling premiums pointed to slowing demand in top consumer China. Yangshan premium dropped to $54 a tonne, its lowest since Nov. 27, indicating weakening demand for the imported metal from top consumer China.
 
Copper inventories in warehouses approved by the London Metal Exchange climbed to 150,325 tonnes, their highest since Nov. 26, while ShFE stockpiles were last at 188,359 tonnes, their highest since Sept. 18. The spread of COVID-19 variants could spark fresh volatility in the market. Factory orders in Germany increased 1.2 percent month-over-month in February of 2021, following a downwardly revised 0.8 percent rise in January and in line with market forecasts.
 
Orders went up for capital (2.1 percent) and intermediate goods (0.5 percent) while orders for consumer goods shrank 1.9 percent. “In particular, orders in the important automotive and mechanical engineering sectors once again developed positively,” the economy ministry said. Compared with February 2020, the month before restrictions were imposed due to the coronavirus pandemic in Germany, new orders increased by 5.6 percent.
 
Technically market is under fresh buying as the market has witnessed a gain in open interest by 4.3% to settled at 2863 while prices up 6.25 rupees, now Copper is getting support at 692.1 and below same could see a test of 688.6 levels, and resistance is now likely to be seen at 698, a move above could see prices testing 700.4.          
  
Trading Ideas:   
#             Copper trading range for the day is 688.6-700.4.
#             Copper prices gained after Chile tightened its lockdown over a spike in COVID-19 infections, with several new variants circulating.
#             However upside seen limited amid rising inventories and falling premiums pointed to slowing demand in top consumer China.
#             Germany factory orders rise for 2nd month

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