Copper prices rose 0.35% to settle at 716.4, owing primarily to a decrease in copper output in Chile. The South American country reported 444,905 tonnes of copper produced in November, a 3.1% YoY decrease.
This comes after a 4.4% YoY decline in output (copper) from 485,400 tonnes in October 2022 to approximately 464,300 tonnes in October 2023.
Asian buyers have an advantageous opportunity to purchase copper at a reduced prices due to the substantial discounts that have occurred against longer-dated contracts as a result of the oversupply scenario, especially on the LME.
Concerns about sustain poverty and growing debt levels in many developing nations are raise by this prediction. Furthermore, the World Bank predicts that in 2024, China’s economic growth will slow to 4.5%.
Given that China is the world’s largest consumer of metals. The release of China’s trade data on Friday is anticipat to shed light on the future prospects for copper demand.
Technically, the market is experiencing short covering as open interest dropped by 2.69% to settle at 6217. The price of copper has increased by 2.5 rupees in spite of this. Support for copper is located at 713.8, and if this level is broken, it could test 711.1.
Resistance is seen at 718.5 on the upside, and a break through there could send prices as high as 720.5. The dynamics of price movement and open interest point to a cautious optimism in the market, and traders are keeping a close eye on these levels for any changes in the direction of copper prices.