Copper prices rose 0.01% to 713.35, despite persistent dollar strength and calmed consumer demand. The US dollar strengthened due to the Federal Reserve’s defiance of market projections of multiple reductions in rates in the face of persistent inflationary pressures. Which had an effect on copper benchmarks priced in currency and reduced importers’ purchasing power.
China, a significant participant in the copper market, reported slower-than-expected growth rates. Which further dimmed the picture as the nation decided not to carry out further stimulus measures.
The People’s Bank of China’s unanticipated decision to keep its medium-term facility rates unchanged was indicative of this caution.
Furthermore, since the start of the year, copper inventories at large Chinese warehouses have increased by almost 40%.
A decline in Yangshan copper premiums, and a reluctance on the part of manufacturers to make substantial bids.
Chile, a significant copper-producing region, was also found to face output challenges. Citing delays in ongoing projects, the Chilean Copper Commission (Cochilco) stated a slowdown in the growth of copper output for the decade.
In spite of this, Antofagasta (LON:ANTO) announced that its copper production increased by 2% in 2023 to 660,600 metric tonnes.
Technically speaking, the market for copper is experiencing short covering as evidenced by a 5.19% decline in open interest that settled at 4821.
Copper Prices increased by 0.05 rupees, with 710.7 serving as support. If this level is broke, prices may test 707.9. If they move above 716.1, which is expected to be resistance, prices may test 718.7.