Copper gained after trading in the range as persistent concern about excess copper supply in the second half limited the upside.  The low disruption rate for copper mines and the ramping up of new and expanded mines is expected to increase supply in coming months. WBMS data showed global copper supply deficit expanded in H1 2016 and consumption grew faster than supply.

At the MCX, copper futures for August 2016 contract is trading at Rs 317.40 per kg, down by 1.47 %t, after opening at Rs 321, against a previous close of Rs 322.15. It touched the intra-day low of Rs 317.25.

According to the WBMS, global copper market was in a supply  deficit of 197,000 tons in H1 2016, expanding from a deficit of 48,000 tons  during January-May, a sharp reversal from the surplus of 372,000 tons in 2015.  This marks the first supply shortage since October 2014.Visit Us http://www.ripplesadvisory.com/agri-commodity.phpor Get Free Trials Just Give One Missed Call @98-27-80-80-90.

 Global copper concentrate output totaled 9,998,630 tons in H1 2016, up 5.93% from a year ago.  This was contributed mainly by a 51.46% or 381,274 tonne surge in output in Peru, due to commissioning of Las Bambas and Cerro Verde II copper mines. Output in Chile, by contrast, slid 5.35% from a year ago to 2,764,500 tons because of falling ore grade.

Chinese copper concentrate imports from Peru shot up nearly 95% year-on-year during the first half of this year, according to latest data from the General Administration of Customs. Copper LME stocks fell 2,800 tonnes to 210,625 tonnes and cancelled warrants at 4,625 tonnes to 59,375 tonnes. 

 Technically market is under short covering as market has witnessed drop in open interest by -3.29% to settled at 23305 while prices up 1.5 rupee, now Copper is getting support at 320.5 and below same could see a test of 318.7 level, And resistance is now likely to be seen at 323.3, a move above could see prices testing 324.3.