Copper yesterday settled down by -0.43% at 644.95 as aggressive monetary tightening around the world has stoked fears of a global recession and dampened the demand for metals. The US Federal Reserve led the charge with its third straight 75 basis point rate hike to bring down inflation, along with increases by the Bank of England and the Swiss National Bank, among others. Economic uncertainties in China also weighed on sentiment after Nomura and Goldman Sachs (NYSE: GS ) lowered their growth forecasts for the country, citing expectations that its strict zero-Covid strategy would extend well into next year. Copper output in Chile, the world's largest producer of the metal, fell 9.4% year-on-year to 422,888 tonnes in August, the country's statistics agency INE said. Copper inventories in warehouses monitored by the Shanghai Futures Exchange fell 17.4 % from last Friday, the exchange said.
The copper spot premium in top consumer China could stay elevated in the next few months, as demand for the metal has improved on the back of government stimulus. The spot premium for refined copper was at 605 yuan ($85.36) a tonne on Thursday, up from 50 yuan a tonne at the end of last year. Earlier this month, it hit 825 yuan, the highest since November 2021.
Technically market is under fresh selling as the market has witnessed a gain in open interest by 3.15% to settle at 5069 while prices are down -2.8 rupees, now Copper is getting support at 640.5 and below same could see a test of 635.9 levels, and resistance is now likely to be seen at 652.9, a move above could see prices testing 660.7.
# Copper trading range for the day is 635.9-660.7.
# Copper dropped as aggressive monetary tightening around the world has stoked fears of a global recession and dampened the demand
# Copper output in Chile, fell 9.4% year-on-year to 422,888 tonnes in August
# Copper inventories in warehouses monitored by the Shanghai Futures Exchange fell 17.4 % from last Friday, the exchange said.
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