Copper Rose As China’s Parliamentary Meeting Could Provide Clues On Economic Stimulus.

  • Kedia Advisory
  • Commodities News
Copper Rose As China’s Parliamentary Meeting Could Provide Clues On Economic Stimulus.
Credit: © Reuters.

Copper marked a modest gain of 0.26%, settling at 726.9, driven by expectations that the upcoming annual parliamentary meeting in China might offer insights into additional economic stimulus measures. However, copper prices faced pressure as data revealed a rise in inventories in China, reaching a year-high of 181,323 tonnes post the Chinese New Year holiday. This increase came amid a backdrop of declining new home prices in China despite government efforts to boost confidence in the real estate sector. Investor attention shifted towards inflation data from the United States, Japan, and Europe, influencing expectations for future rate movements. 

The market also assessed the impact of China's stimulus and looser monetary policies on base metal demand, particularly copper. These developments align with the broader pessimism surrounding industrial demand in China, as reflected in four consecutive months of contractionary manufacturing PMI. The International Copper Study Group (ICSG) reported a surplus of 20,000 metric tons in the global refined copper market for December, reversing the 123,000 metric tons deficit in November. For the first 12 months of the year, the market showed an 87,000 metric tons deficit compared to a 434,000 metric tons deficit in the same period the previous year, according to the ICSG. 

From a technical perspective, the copper market is undergoing short covering, with a -0.68% drop in open interest to settle at 3948, accompanied by a price increase of 1.9 rupees. Support is identified at 725, with a potential test of 723.1 below, while resistance is likely at 728.7, and a move above could lead to testing 730.5.

Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb

Error: File type not supported

Drop an image here or


Related Articles