Copper prices saw a modest 0.19% increase to reach 700.45 per unit. This uptrend was primarily driven by a strong demand outlook and concerns about future supply. The demand for copper remains robust, especially from the renewable energy and infrastructure sectors. A significant development contributing to these concerns is Glencore (LON:GLEN)'s announcement of closing its Mount Isa copper operations in Australia by the second half of 2025.
Despite a recent surge in copper inventories, fears of future shortages persist, as demand continues to outpace supply projections. Two key reports, one from the EIA and the other from the International Copper Association, forecast a 26% increase in copper supply by 2035, significantly below the anticipated 50% rise in demand. In this context, the market is closely monitoring the dynamics between supply and demand. Additionally, positive economic news emerged from China, as its Q3 2023 GDP expanded by 4.9%, surpassing market expectations. This growth was attributed to sustained monetary stimulus, compensating for weak foreign demand and the lingering property crisis.
From a technical perspective, the market observed short covering with a 14.33% drop in open interest, settling at 6848. Copper prices increased by 1.35 rupees. Copper now finds support at 698.1, with a possible test of 695.8 if this level is breached. On the upside, resistance is expected at 703.9, with potential testing of 707.4 if prices break through this level.
To access our in-depth coverage of the global commodity market and read the full story, kindly download the Kedia Advisory app through the provided links below:
Download the App:
Android: https://tinyurl.com/KediaAdvisoryApp