Mumbai, 03 May (CommoditiesControl): Copper prices staged a recovery on Friday, buoyed by a softened dollar and revised supply forecasts following mine disruptions. Three-month copper on the London Metal Exchange (LME) surged 1.08% to $9,871.50 per metric ton, bouncing back from a 1.3% dip in the previous session. However, LME copper heads towards its first weekly decline in five weeks, sliding approximately 1% from its recent peak of $10,208 on Tuesday.
Recent data from the International Copper Study Group, which drastically reduced its global surplus estimate for this year. The forecast plummeted to 162,000 tons from the initial 467,000 tons projected in October, signaling potential deficits ahead due to supply disruptions and robust demand, particularly from China's power grid investments.
A weaker dollar, reaching a three-week low ahead of U.S. jobs data, further bolstered the metals market, making commodities priced in USD more affordable for non-dollar buyers. However, lighter metals volumes were observed, attributed to the closure of Chinese markets for the Labour Day holiday from May 1-3.
Analysts anticipate potential declines upon the reopening of Chinese markets on May 6, cautioning against a sustained risk-off mood exacerbating market activity. LME nickel climbed 1.4% to $18,900 a ton, despite inventories surging to a 15-month high, up 73% over the past five months.
In the domestic market, MCX copper recorded a 0.83% increase, currently trading at 853, signaling a breakout from the earlier flat trading with low volume. The initial upside target stands at 857, supported by long buildup in both May and June futures contracts according to open interest analysis.
(By Commoditiescontrol Bureau; +91-9820130172)
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