Copper yesterday settled up by 1.07% at 729.95 amid persistent supply concerns, while markets continued to monitor signals from China’s government on any stimulus measures. Copper output in top producer Chile sank 14% annually in May, among the latest signs that declines in global supply foreshadow an incoming shortfall amid the metal’s essential use in the world’s transition to sustainable energy sources.
The data raised concerns that production in Chile may fall by more than Codelco’s forecast of 7%, extending the plunge from 2022. In the meantime, a slower-than-expected GDP growth in China extended demand concerns from the world’s top consumer, adding to investors’ bets on incoming stimulus from the country’s government. Global miner Anglo American (LON: AAL ) said its first-half copper production surged 42%, underpinned by the ramp-up of its Quellaveco mine operations in Peru. Copper production rose to 387,200 metric tons in the first half from 273,400 metric tons a year before, it said. An increase in copper demand for applications from solar panels to electric cars is set to steepen sharply in the coming years as the world moves toward green energy and electrification.
Technically market is under short covering as the market has witnessed a drop in open interest by -39.12% to settle at 2037 while prices are up 7.7 rupees, now Copper is getting support at 722.7 and below same could see a test of 715.3 levels, and resistance is now likely to be seen at 738.6, a move above could see prices testing 747.1.
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