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Copper Surges 0.38% to 734.75 as China Pledges Economic Stability Measures

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Copper prices closed up 0.38% at 734.75, boosted by anticipates of more measures from China to stabilise its economy or stock markets. Gains were restrained, though, by low demand.

Investor confidence was impacted by a recent liquidation order for debt-ridden developer China Evergrande. Which heightened worries about the decline in China’s real estate market.

Despite these obstacles, concerns about supply disruptions in mines helped to prop up copper prices, leading them to reassess their projections for the current year from surpluses to deficits.

Since early December, the Yangshan premium—a measure of Chinese demand for imported copper—has dropped by 50%. Indicating a decline in the country’s appetite for the metal.

Persistent worries further supported prices, indicating concerns that long-term supply would not be able to meet the demand for copper, which is essential for electrification.

In November, there was a notable increase from the 48,000 metric tonnes deficit in October to a reported 119,000 metric tonnes deficit in the global refined copper market.

According to the International Copper Study Group (ICSG). 2.26 million metric tonnes of refined copper were produced globally in Novembe. Compared to 2.38 million metric tonnes of consumption.

According to the ICSG’s monthly bulletin, taking into consideration variations in the stock in Chinese bonded warehouses. There was a 128,000 metric tonnes deficit in November, up from a 70,000 metric tonnes deficit in October.

Technically speaking, there appears to be new buying in the copper market as open interest increased by 1.06% to close at 4692. The price increase is 2.8 rupees.

Support for copper is seen at 731.5, and a test of 728.2 levels could be seen on the downside. Resistance on the upside is seen at 736.6. A break through there may result in a test of the 738.4 levels.

SHREE METAL PRICES