Copper Prices declined as China’s demand decreased after a recent spike in replenishment.


Copper prices declined -0.56% to close at 730.55. This was mostly due to China’s muted demand after a recent spike in restocking. Which resulted in premiums becoming discounts of 110 yuan per tonne.

Leading copper smelters in China reduced their 1st-quarter guidance for copper concentrate processing, treatment, and refining charges, citing mine closures and disruptions as the cause of a tightening supply outlook.

In comparison to the fourth-quarter guidance of $95 per tonne and 9.5 cents per pound, a 6-year high, the rates. Which were decided upon at a meeting of the China Smelters Purchase Team, were $80 per metric tonne and 8 cents per pound, a 16% drop.

According to the International Copper Study Group. The global refined copper market had a shortfall of 53,000 metric tonnes in October. A slight improvement from the 56,000 metric tonnes deficit in September.

In October, 2.39 million metric tonnes of refined copper were consumed, compared to an output of 2.34 million metric tonnes.

After accounting for variations in inventory in Chinese bonded warehouses. The October deficit was reported at 52,000 metric tonnes, down from the September deficit of 62,000 metric tonnes.

Technically speaking, new selling is occurring in the copper market right now, as seen by the 0.18% rise in open interest that led to the market closing at 5089. A break below 727.7 provides support for copper, and a test of 724.8 may follow.

Resistance is seen at 734.4 on the upside, and a rise above it could send prices as high as 738.2.