Supply concerns ease; Copper sneeze: Angel Broking

Views of Ms. Kaynat Chainwala (Research Analyst - Base Metals, Angel Broking):

"Currently, there is a major turnaround in the Copper bullish story as the metal is facing the heat, all thanks to easing of supply disruption concerns at the major mines. MCX Copper currently at Rs.377/kg, is at the lowest level since Jan'17, in line with falling prices at the LME.

Prime reason being recent comments by the workers union at Escondida, the world's biggest copper mine in Chile, that it was open to further conversation with the company, in turn giving way to negotiations. Other major setback came from Freeport in Indonesia, which has resumed production of copper concentrate at its giant Grasberg mine.

This is likely to keep Copper stressed in the coming weeks since these two mines collectively account for 8 percent of global copper production."

Source : Equity Bulls

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