Copper has lost its momentum and has fallen in India. Various fundamental factors from currency appreciation, collapse of some developers in china and increase in supply has accounted for this continuous loss for 8 working days (Baring two days).
Copper has lost its value from 446 to 398.85 today at 6:06 pm IST. This is around 10.53% loss in a month. In LME it lost its value from 7085 to 6483 IST 6:06 pm.
INR has appreciated from 62.50 to 60.91 till today. One of the Chinese company name Zhejiang Xingrun Real Estate Co. has defaulted. China is biggest consumer of the metal as its infra sector is consuming most of supply for the metal. Copper inventories in Europe tracked by LME increased most in 16 months time.
Apart from this factors, focus will also remain on US policy which is expected to stop tightening today. If this come true than we may see copper in range bound trade.
According to our view it may remain range bound after sudden fall till we get any clarity on china copper consuming projects.