Traders Rush To Purchase Copper, Surprisingly Chinese Imports Are Down.

On Wednesday, huge rush of buying Copper was seen in the markets. Long positions building and liquidation of shorts was the order of the day in major future exchanges. The affect was due to the positive triggers from the Chinese exports markets that the vale of Imports and exports up by 44% in the first five months of this year.

We were a bit surprised while watching a substantial rise in the Copper contracts even before the data was officially released by China general administration of customs. Although it is true that the prices were in a oversold zone and the rise was expected in shorter duration. Now after the data of imports of Copper is officially in front of public it will be concerning to see the directions in the metal as the news has already been priced in.

In China, Imports of unwrought Copper and Copper concentrates have come down by 9% in May on a monthly basis. Remember the red metal jumped due to positive exports data and not on the fall of imports. Because if that is the case prices shouldn't have shown the amount of rally it did on Wednesday.

Most active Globex futures for July expiry is seen trading in red today at $ 2.83 per lb as against $ 2.85 per lb on Wednesday. The price of Shanghai Copper is on a contrary high by 690 yuan at 50570 yuan per tonne.

Indian Copper futures for June expiry closed at Rs 296 per kg, up Rs 9, or 2.9%. Resistances for the contract are at Rs 300 per kg, while Supports for the contract are at Rs 291. LME three month forward Copper prices closed at $ 6315 per tonne, up $ 195.

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