Monye Market Guru — The Lunar New year holiday is denting the confidence of the prices of Copper. On the other hand, a weak report of Copper imports also created panic selling during the week. Chinese copper imports fell sharply in February, customs data showed on Wednesday, as the Lunar New Year holiday deepened a slowdown in demand from the worlds top consumer and producer.
Copper imports to China, the worlds leading copper and Aluminium consumer, came in at 340000 tonnes in February, down 10.5 percent on a month earlier and down 19 percent from a year ago, the General Administration of Customs showed. For the first two months of the year, imports were 720000 tonnes, down 15.8 percent.
The weak data will underscore growing concerns about Chinas waning appetite for refined metal amid a build-up in inventory, although the drop in refined metal also partially reflects the countrys growing output of refined metal. The inventories in Asia has been rising quite swiftly that is one of the reasons for the prices of Copper to gain ground. Total inventories have reached highest since levels since December and raising concerns about demand in Asia. Stocks have jumped by more than half since the start of March as traders have opted to deliver rather than pay soaring fees to roll contracts. — Money Market Guru — Pia