Copper prices surges strongly during yesterday’s trading session, rising 1.11% to 855.3, boosted by a number of factors.
“A weaker dollar, resulting from weak US employment data and forecast revisions indicating decreased supply due to mine disruptions, aided the positive momentum.”
Concerns about supply were heightened by ICSG’s sharp decline in its prediction of a global surplus this year. The closure of the largest open-pit copper mine in the world. Cobre Panama, and power outages that affected important mines in Zambia.
Due to its crucial role in electrification projects, copper continues to have a bullish demand outlook, suggesting sustained demand over the long run.
The Fed hinted at cautious monetary policy adjustments by reiterating the significance of obtaining “greater confidence” in the inflation trajectory before implementing rate cuts. Even though it was leaning towards final interest rate cuts.
It’s interesting to note that Chinese copper producers intend to export up to 100,000 metric tonnes of metal. Which would be the highest amount in 12 years, against a backdrop of increased demand and supply disruptions.
SHREE METAL PRICES