Copper yesterday settled up by 0.26% at 714.3 as mounting supply concerns and expectations of government stimulus outweighed evidence of low purchasing activity. Major market players continued to flag concerns that copper supply cannot keep up with expectations of long-term demand, as metal is a key raw material for the transition to renewable resources. Copper inventories at the Shanghai Futures Exchange fell to under 135 thousand tonnes in May, the lowest this year, and those at the London Metal Exchange were under 60 thousand tonnes, the lowest since 2005. Also, Chile said this year's output is estimated to sink as much as 7% after the 10.6% decline in 2022.
In the meantime, concerning manufacturing activity and industrial growth figures in China ramped up bets of incoming stimulus measures from the Chinese government. The global refined copper market had a 2,000-tonne surplus in March, compared with a 196,000-tonne surplus the previous month, the International Copper Study Group (ICSG) said in its latest monthly bulletin. World refined copper output was 2.310 million tonnes and consumption was 2.308 million tonnes, the ICSG said.
Technically market is under fresh buying as the market has witnessed a gain in open interest by 1.27% to settle at 6626 while prices are up 1.85 rupees, now Copper is getting support at 711.9 and below same could see a test of 709.3 levels, and resistance is now likely to be seen at 717.3, a move above could see prices testing 720.1.
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