Base Metals Preview: COMEX Copper Stays Supported

3 Jan 2022 , 12:59 AM

COMEX Copper edged up on supportive Chinese economic cues after witnessing a moderation earlier in the last week. The Dow and the S&P 500 had reached new record highs last week. This capped losses in Copper and the metal extended this upmove. COMEX Copper ended around $4.46 per pound. MCX Copper edged up 0.85% on the day to close around Rs 749 per kg. Copper has had a brilliant run in the current year amid soaring global equities and extremely weak inventories on LME. Copper futures gained around 25% in 2021. The purchasing managers index (PMI) for Chinas non-manufacturing sector came in at 52.7 in December, up from 52.3 in November, the National Bureau of Statistics said Friday. A reading above 50 indicates expansion, while a reading below it reflects contraction. The overall business climate in the non-manufacturing sector has rebounded this month. The services sector witnessed a faster recovery. In December, the sub-index for business activities in the services sector reached 52, up 0.9 percentage points from that in November. The construction industry expanded at a slower pace, with the sub-index for business activities in the construction sector standing at 56.3 in December, 2.8 percentage points lower from the previous month. Fridays data also showed that the PMI for Chinas manufacturing sector came in at 50.3 in December, up from 50.1 in November.

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