Copper Gains on Tightening Inventory, Improved China Demand

Copper inventories in warehouses monitored by the Shanghai Futures Exchange fell 0.5 % from last Friday, the exchange said.

SEATTLE (Scrap Monster):  Copper yesterday settled up by 0.55% at 771.1 supported by supply concerns amid tightening inventories and production disruptions, on the back of improving demand from top consumer China and a shaky U.S. dollar. A court has ruled that Ecuador failed to give local communities in a highly biodiverse province their right to an environmental consultation on a joint copper mining venture by state-run ENAMI and a subsidiary of Chile's Codelco, lawyers for the communities said, and the project must be suspended. 

China's services activity in March revved up at the quickest pace in 2-1/2 years on robust new orders and job creation and a consumption-led post-COVID recovery, a private-sector survey showed. However, support for copper comes from stocks in LME registered warehouses, which at 65,250 tonnes have dropped almost 15% over the past two weeks. Canceled warrants – metal earmarked for delivery – at around 47% of the total suggests more metal is due to leave the LME system, leaving on warrant stocks at 34,350 tonnes, the lowest since late 2021. Copper inventories in warehouses monitored by the Shanghai Futures Exchange fell 0.5 % from last Friday, the exchange said. 

Technically market is under short covering as the market has witnessed a drop in open interest by -4.17% to settle at 3726 while prices are up 4.2 rupees, now Copper is getting support at 765.5 and below same could see a test of 759.7 levels, and resistance is now likely to be seen at 775, a move above could see prices testing 778.7. 

Courtesy: www.investing.com

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