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Copper falls on production surplus forecast

FXStreet (Mumbai) - Copper declined to March 2014 levels today after the International Copper Study Group (ICSG) said it expects Copper market to swing into production surplus in 2015.

Copper, On the Comex division of the Ney York Mercantile Exchange, hit a low of USD 2.952/pound today. The metal is down for the third consecutive day, trading 0.66% lower at USD 2.966/pound. The Copper market has been in the deficit since last five years. However, the ICSG now predicts a surplus in 2015.

The latest report from ICGS says world refined copper production is likely to increase by about 5% year-on-year to 22.1 million tonnes in 2014 and by a further 4% to 23.1 million tonnes in 2015 as a result of new electrolytic plants coming on stream in China. It also predicts more than a million tonnes of new copper capacity, or around 6% of global mine production in next six months.

Meanwhile, the ICSG also cites a downside threat to the Copper demand due to an economic slowdown in the second half of this year.

Copper Technical level

Copper has an immediate support of 2.951 (daily low), below which prices can fall to 2.928 (March 19 low). On the flip side, prices can rise to 3.00 levels if the immediate resistance of 2.986 (Oct 2 low) is taken out.

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