Copper Prices Slip by 0.31%: Antofagasta’s Production Increase Impact


Copper prices fell -0.31% to 713.3, owing to a variety of factors, including reports of Antofagasta (LON:ANTO) increasing copper output by 2% to 660,600 metric tonnes in 2023. The increase was ascribed to Los Pelambres, the company’s flagship project, having more water available.

Even with this encouraging development, Antofagasta projected copper output for 2024. Which ranges from 670,000 to 710,000 tons—fell short of the first projections that were made public in October.

A major participant in the copper market, China’s economy grew at a slightly slower rate than anticipated in December. Which raised concerns about the real estate market and specifically about a 23% decline in floor area sales.

During the same period, other economic indicators showed modest growth in investments and slow growth in retail sales. But there were signs of improvement in industrial output.

Premier Li Qiang of China, however, maintained his positive outlook on the economy, saying it had recovered and was now growing at a rate of 5.2% in 2023—above the 5% official target.

Li stressed the Chinese economy’s resilience to shocks, with a steady general trend of long-term growth, at the Global Economic Forum in Davos.

Technically speaking, the copper market saw a long liquidation, with open interest declining by 4.58% and ending at 5085. The prices decreased by -2.2 rupees.

Right now, copper prices is finding support at 711. And if that level is broken, it could test 708.7. Resistance on the upside is seen at 715.8, and a move above there could push prices as high as 718.3.