Copper yesterday settled up by 1.37% at 764.45 amid strong U.S. economic data and the Federal Reserve's commitment to continue supporting the economy fueled investors' appetite for risk. The global
market should see a surplus of 79,000 tonnes this year and of 109,000 tonnes in 2022, the International Copper Study Group (ICSG) said.
Factory activity in top metals consumer China expanded at a slower-than-expected pace in April as supply and transport bottlenecks weighed on production and overseas demand lost momentum. Copper's rally, driven by a combination of optimism about recovery prospects for the pandemic-hit global economy and supply concerns, is likely to stall in the second half of 2021 as China reins in stimulus spending.
Goldman Sachs (NYSE: GS ) forecast copper would average $9,675 a tonne in 2021, $11,875 a tonne in 2022 and $12,000 a tonne in 2023. However, Yangshan copper premium fell to $43 a tonne, its lowest since April 2017, indicating weakening demand from top consumer China as prices have leapt 24% this year. The global world refined copper market showed a 28,000 tonnes surplus in January, compared with a 1,000 tonnes deficit in December, the International Copper Study Group (ICSG) said in its latest monthly bulletin.
Technically market is under fresh buying as the market has witnessed a gain in open interest by 14.01% to settled at 4084 while prices up 10.35 rupees, now Copper is getting support at 756.1 and below same could see a test of 747.8 levels, and resistance is now likely to be seen at 768.8, a move above could see prices testing 773.2.
# Copper trading range for the day is 747.8-773.2.
# Copper prices gained amid strong U.S. economic data and Fed’s commitment to continue supporting the economy fuelled investors' appetite for risk.
# Global copper market to see 79,000-tonne surplus in 2021, says ICSG
# Copper's rally, driven by a combination of optimism about recovery prospects for the pandemic-hit global economy and supply concerns
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