The Copper price fell for a third consecutive session as profit-taking continued on Thursday and consumers refused to buy at near-record levels.
Copper futures fell over five percent on Wednesday, retreating sharply from the record-high 945.90 on May 20th as poor demand in the near term weighed against speculative bets that triggered a broad-based surge in base metals this month.
Import demand in China, the world’s top copper consumer, remained at low levels despite tight ore supply and low treatment volumes in the country’s huge refining industry.
This lifted inventories and drove the price for delivery intakes from bonded warehouses to a discount to LME prices for the first time since data started in 2017, indicating low physical demand.
Still, speculative bets for copper kept prices 25% higher year-to-date, based on its key role in electrification in grid-scale energy storage and data-center infrastructure, matching eventual traction in Chinese bidding after Bejing unveiled historical measures to prop up its economy.
This coincides with large costs to add new supply, driving miners to M&A action instead of developing new projects.
Technical Outlook – Copper Price
The Copper price broke its uptrend from May 21, 2024. Prices dropped significantly from a high of 945.90 and made a low of 880 yesterday. Prices stabilized by 0.52% at 891.50.
The intraday copper price action caused the formation of a high wave candle, indicating imminent indecision. However, prices are trading at the border of decisive support at 875.00, in case of a break, prices may retreat to 865-855.00.
Otherwise, the copper price should consolidate between 875-920.00
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Commodity Samachar
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