1 kg Copper Price in India: Copper prices have recently experienced a decline, falling by 2.21% to settle at ₹834.95 per kg. This drop can be attributed to ongoing uncertainties surrounding China’s economic recovery, despite the government’s efforts to stimulate growth through various measures.
Investors are currently navigating a cautious market environment, as confidence in these stimulus initiatives remains tenuous.
China’s Economic Stimulus and Its Impact
In September, the Chinese government introduced a series of policies aimed at bolstering its economy, including lowering interest rates and easing restrictions on home purchases.
However, these measures have yet to significantly influence investor sentiment. The sluggish domestic demand for copper in China is underscore by a noteworthy decline in unwrought copper imports. Which fell to a 16-month low of 415,000 metric tons in August—a decrease of 12.3% compared to the previous year.
Despite this, it’s important to note that total copper imports for the first eight months of 2024 are still up by 3% year-on-year. Indicating some underlying demand dynamics.
Meanwhile, copper stockpiles in the Shanghai Futures Exchange warehouses have seen a considerable reduction of nearly 60% since June, reflecting localized demand. However, the prevailing market sentiment remains overshadowed by concerns regarding the broader economic outlook.
Global Supply and Demand Dynamics
Global Dynamics of Supply and Demand The global copper refined market reported a surplus of 91,000 metric tonnes in July, down from a surplus of 113,000 metric tonnes in June, according to the International Copper Study Group (ICSG).
Year-to-date, the market has posted a cumulative surplus of 527,000 metric tons, indicating a significant increase compared to the 79,000 metric tons surplus recorded in the same period last year.
World refined copper production reached 2.35 million metric tons in July, while consumption lagged slightly behind at 2.26 million metric tons. This disparity highlights an oversupply in the copper market, which continues to weigh on prices.
Additionally, China’s copper concentrate imports declined by 4.7% in August compared to the previous year, further contributing to the bearish sentiment in the market.
Technical Analysis and Price Forecast
From a technical standpoint, copper is currently undergoing long liquidation, evidenced by a 3.4% drop in open interest, which now stands at 8,586 contracts.
The recent price decline of ₹18.9 indicates potential support at the ₹827 level, with further downside risks that could test the ₹819 level. On the upside, resistance is anticipated at ₹847.5, and a successful move above this threshold could propel prices towards ₹860.
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