Copper Fell As Demand In China Slowed Following A Recent Surge In Restocking.

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Copper Fell As Demand In China Slowed Following A Recent Surge In Restocking.

Copper prices experienced a decline of -0.56%, settling at 730.55, primarily influenced by subdued demand in China following a recent restocking surge, leading to premiums turning into discounts of 110 yuan per ton. Top copper smelters in China adjusted their first-quarter guidance for copper concentrate processing treatment and refining charges lower, reflecting a tightening supply outlook due to mine closures and disruptions. 

The rates, set at a meeting of the China Smelters Purchase Team, were $80 per metric ton and 8 cents per pound, marking a 16% decrease from the fourth-quarter guidance of $95 per ton and 9.5 cents per pound, a six-year high. 

The global refined copper market showed a deficit of 53,000 metric tons in October, a slight improvement from the 56,000 metric tons deficit in September, according to the International Copper Study Group. October's refined copper output was 2.34 million metric tons, while consumption reached 2.39 million metric tons. Adjusting for inventory changes in Chinese bonded warehouses, a 52,000 metric tons deficit was reported for October, compared to a 62,000 metric tons deficit in September. 

From a technical standpoint, the copper market is currently witnessing fresh selling, evident in the 0.18% increase in open interest to settle at 5089. Copper finds support at 727.7, and a breach below this level could lead to a test of 724.8. On the upside, resistance is identified at 734.4, and a move above could propel prices to test 738.2.

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