Copper prices fell on Friday, weighed down by rising inventories amid weak demand, while market participants awaited trade data from top consumer China for further guidance.
Three-month copper on the London Metal Exchange HG1! dipped 0.2% to $9,771 per metric ton. It has declined 1.8% so far this week. The most-traded August copper contract on the Shanghai Futures Exchange HG1! fell 1.2% to 79,080 yuan ($10,889.86) a ton.
Copper inventories in LME warehouses climbed to 206,775 tons on Wednesday, having doubled since the middle of May to their highest since October 2021. The increase was partly attributed to more cargoes from China, which also sent the price discount for nearby contracts against the benchmark contract to record highs.
The latest batch of economic data in China pointed to persistent demand weakness, while investors look forward to a key political meeting next week for signs of more economic support. Optimism that China’s leaders will aim to boost growth with stimulus at their third plenum meeting on July 15-18 had helped support industrial metals in recent days.
China will release its trade data later in the day. A Reuters poll showed exports likely grew at the fastest pace in 15 months in June, as manufacturers front-load shipments in anticipation of tariffs from a growing number of the country’s major export markets.
Technical Outlook : Copper Future
Copper prices witnessed 1.46% an intraday fall yesterday. Prices touched day’s low 855.10 and settled at 856 compared to the previous day’s close of 868.70.
Formation of a long bearish candle stick is suggesting for a heave selling pressure in the prices. Further, Relative strength index is giving a negative crossover.
Hence, near future momentum expect to remain negative. On the downside, immediate support is seen at 842-835.00.
On the upside, immediate resistance is seen at 872-885.00.
Happy Trading!
Commodity Samachar
Learn and Trade with Ease
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