Copper rose as worries over a global banking crisis eased
Copper yesterday settled up by 0.48% at 758.35 as worries over a global banking crisis eased, with copper further supported by improving consumption in China. Measures by authorities to avert a global banking crisis lifted market confidence as investors welcomed a historic Swiss-backed acquisition of troubled Credit Suisse (SIX: CSGN ) by UBS Group and emergency dollar liquidity from top central banks. Yangshan copper premium rose to $50 a tonne, its highest since December last year, indicating an improving appetite for imported copper into China, the world's biggest consumer of the metal. SHFE copper inventories fell for the third straight week to 182,341 tonnes, their lowest since Jan. 20. China's copper consumption is rebounding firmly and will likely stay strong in the next quarter, buoyed by a seasonal peak in demand and easing COVID-19 restrictions in the world's biggest consumer of the metal. The long-awaited rebound is providing much-needed support for copper prices, battered by a widening banking crisis in the United States and liquidity issues at Swiss lender Credit Suisse. China's housing completion by areas rebounded 8% year-on-year in January and February from a 15% drop in the whole of 2022, National Bureau of Statistics data showed. The recovery in the property sector is boosting copper cable orders, while copper tube makers are also running strong. Technically market is under short covering as the market has witnessed a drop in open interest by -12.84% to settle at 2526 while prices are up 3.6 rupees, now Copper is getting support at 749.7 and below same could see a test of 740.9 levels, and resistance is now likely to be seen at 763.3, a move above could see prices testing 768.1.
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