Copper prices settled down by -0.85% at 814.1, pressured by a lack of forceful policy support for China's troubled property sector. In a special briefing, top Chinese officials announced plans to expand the “white list” of real estate projects and boost bank lending for these developments to 4 trillion yuan by the end of the year. However, the market was left disappointed, as investors had anticipated more aggressive stimulus measures, with Chinese authorities largely relying on existing policies. Further dampening sentiment were expectations that the U.S. Federal Reserve will take a cautious approach to cutting interest rates in upcoming meetings. In Peru, copper production rose by 10.7% year-on-year in August, reaching 246,568 metric tons.
From January to August, copper production totalled 1.76 million metric tons, down 0.7% compared to the same period in 2023. The global refined copper market showed a 91,000 metric ton surplus in July, a slight decrease from the 113,000 metric ton surplus in June, according to the International Copper Study Group (ICSG). China's imports of unwrought copper rose by 15.4% in September, reaching 479,000 metric tons, reflecting seasonal demand improvements and a better consumption outlook. However, the figure was almost unchanged from September 2023, and year-to-date imports were up 2.6%.
On the technical front, copper is experiencing long liquidation, with open interest dropping by 0.82%, settling at 7,255 contracts, while prices fell by 6.95 rupees. Copper is finding support at 808.8, with a potential test of 803.3 levels if breached. Resistance is likely at 820, and a move above this level could push prices to test 825.7.