The price of copper continued to rise to its highest level in nearly three years on Thursday. Expectations of a supply cut accelerated as Chinese producers agreed to cut production, while London copper prices fell to a steady US dollar.
The red metal rallied sharply this week after China’s biggest copper meltdown. met in Beijing on Wednesday and agreed to a symbolic cut in money-losing output, without specifying amounts or timing.
March MCX Copper fell to 752.20 yesterday, prices rose to 754.90, the highest level since August 2023.
Shanghai on the other hand. hand Copper prices rose to an almost three-year high on Thursday. Expectations of a drop in supply rose after Chinese producers agreed to cut output, while London copper prices fell on a steady US dollar.
MCX Copper for March month settled at 752.20 yesterday, prices hit 754.90, highest levels since August 2023.
On the other hand, Shanghai copper prices rallied to a near three-year high on Thursday, buoyed by expectations of lower supply as Chinese producers agreed tp cut output, while London copper eased amid a firm U.S. dollar.
Three-month copper on the London Metal Exchange (LME) HG1!, however, eased 0.5% to $8,875, having surged to its highest in nearly 11 months. Mine disruptions and vast global smelting capacity expansion have led to shortages of copper ore, resulting in China’s biggest copper smelters agreeing to cut output at some loss-making plants, while adjusting maintenance plans and postponing new projects.
China produced 13 million metric tons of refined copper last year, or 47% of the global output, data from the World Bureau of Metal Statistics showed. It is also the world’s biggest copper consumer.
Analysts had forecast that the fees to process copper concentrate could rebound in the second quarter, the seasonal peak of Chinese smelting maintenance.
The dollar index nudged up as traders awaited more data from the world’s largest economy for clues on the direction of Federal Reserve policy.
Technical Outlook
The price of copper has increased by 2.82% since the beginning of the week. Yesterday, prices rose to 754.9 and settled at 752.20.
The price turned positive from a low of 699.50 (February 12, 2024) and continued to rise. The formation of a long ascending candlestick further indicates an upward trend in the near future. Additionally, it is supported by the RSI.
However, prices should rise above 755.50 to test the next resistance at 760-765.00. Otherwise, any dip to 743.50-745.00 could attract buying.
However, 734.80 is a key support below which prices could fall to 727.00-725.00
Commodity Samachar
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