Weekly Copper Review: Modest Buying Emerges, Sentiments Tepid

A staggered recovery emerged in Copper as three month lows triggered some bargain buying. Chinas industrial profits rose strongly in the first two months of the year, but the pace of growth eased from last year, data from the National Bureau of Statistics showed Tuesday. Industrial profits gained 16.1% year-over-year in the January to February period. However, the rate of earnings growth decelerated markedly from a 31.5% jump recorded in the same period of 2017. Earnings at state-owned firms surged 29.6% during the period and private firms profits registered an increase of 10%. Copper has been piling up at a record rate on global exchanges so far this year as surplus metal has flowed into warehouses across Asia, Europe and the US during a period of seasonally weak demand. Copper inventories stored in Shanghai Futures Exchange warehouses have jumped more than 90% this year and are at the highest level in 11 months, while Comex copper stockpiles are up 10%. COMEX Copper managed to end just above $ 3 per pound level and could ease in coming days if it fails to sustain above that level. MCX Copper futures closed above Rs 437 per kg after hitting highs near Rs 440 mark and should see a mixed activity with heavy focus on global markets.