Copper Rose As China's Copper Consumption Rebounding And Expected To Stay Strong
Copper yesterday settled up by 0.46% at 754.75 as China's copper consumption is rebounding firmly and will likely stay strong in the next quarter, buoyed by a seasonal peak in demand and easing COVID-19 restrictions in the world's biggest consumer of the metal. The Yangshan copper premium more than doubled in a week to $47.50 a tonne, near a three-month high, indicating improving demand for imported copper in China. China's housing completion by areas rebounded 8% year-on-year in January and February from a 15% drop in the whole of 2022, National Bureau of Statistics data showed.
Chinese state-backed research house Antaike predicted demand for refined copper in China, which accounts for about half of the global demand, could grow 2.7% this year to 13.68 million tonnes. COMEX copper speculators have turned net short on copper, having been taking net long positions for four months, exchange data showed. The People's Bank of China cut the reserve requirement ratio for financial institutions by 25bps on March 17th, 2023, effective from March 27th. It is the first rate cut in banks' reserve ratio since December, in an attempt to stimulate the economy, keep liquidity reasonably ample, and better supply key areas, and weak links.
Technically market is under short covering as the market has witnessed a drop in open interest by -9.58% to settle at 2898 while prices are up 3.45 rupees, now Copper is getting support at 751 and below the same and could see a test of 747.2 levels, and resistance is now likely to be seen at 758.8, a move above could see prices testing 762.8.
# Copper trading range for the day is 747.2-762.8.
# Copper rose as China's copper consumption is rebounding firmly and staying strong
# The Yangshan copper premium more than doubled in a week to $47.50 a tonne, near a three-month high
# Shanghai warehouse copper stocks are down 15.2%.
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