Copper Gains As Protest And Blockades Could Halt Production At Copper Mine In Peru

Copper yesterday settled up by 0.7% at 787.6 as protests and blockades could halt production at the large Las Bambas copper mine in Peru. China's economic activity swung back to growth in January, and the International Monetary Fund made a slight increase to its 2023 global growth outlook. In top copper producer Chile, meanwhile, mine delays are slowing output growth. Copper output in Chile, the world's largest producer of the metal, fell 1.1% year-on-year to 497,971 tonnes in December, the country's statistics agency INE said.

The huge Chinese-owned Las Bambas copper mine in Peru, normally the supplier of 2% of the metal worldwide, could halt production this week due to protests and blockades that are starting to snarl output of the red metal amid already tight global supply. China's refined copper production in 2022 rose 4.5% year on year to 11.06 million tonnes, data from the National Bureau of Statistics showed. Refined copper production was 961,000 tonnes in December, up 3.6% from a year ago. On a daily basis, the average copper output was 31,000 tonnes over the last month, according to official data.

Technically market is under short covering as the market has witnessed a drop in open interest by -0.51% to settle at 4307 while prices are up 5.45 rupees, now Copper is getting support at 778.2 and below same could see a test of 768.8 levels, and resistance is now likely to be seen at 792.6, a move above could see prices testing 797.6.

Trading Ideas:
# Copper trading range for the day is 768.8-797.6.
# Copper gains as protests and blockades could halt production at the large Las Bambas copper mine in Peru.
# Chile copper production down 1.1% in December
# Chinese-owned copper mine in Peru may halt production over the unrest.