Copper stabilized yesterday at -1.26% at 650 after copper inventories in warehouses monitored by the Shanghai Futures Exchange rose 109.3% from last Friday. The Chinese Communist Party Congress begins Oct. 16 and market participants had been hoping for more stimulus announcements to boost the economy of the biggest metal-consuming market.
China’s consumer prices in September rose at the fastest pace since April 2020, driven mainly by food prices, limiting the possibility of further central bank easing to support a faltering economy hit by the downturns. restrictions related to COVID-19 and a collapse of the real estate sector. Strong Chinese demand for , amid tight supply and open import arbitrage, helped Yangshan import copper premiums to $137.50 a tonne, a year-to-year high and approaching its high. since 2014. Chile’s Codelco, the world’s largest copper miner, is offering to sell copper to European buyers at a record premium of around $235 a ton for 2023, an 85% increase from 2022.
The premiums set by state-owned Codelco for the physical delivery of copper paid on top of the London Metal Exchange contract are considered a benchmark for global contracts. Europe’s largest copper smelter, Aurubis, will charge its European customers a premium of $228 per tonne above the London Metal Exchange (LME) benchmark price in 2023, the company said.
Technically the market is in a fresh sell as the market saw an open interest gain of 7.74% to settle at 4954 as prices are down -8.3 rupees, now copper is getting support at 644.8 and below it could see a test of 639.5 levels, and resistance is now likely to be seen at 659.7, a move above could see prices test 669.3.
Trading Ideas:
# Copper’s trading range for the day is 639.5-669.3.
# Copper prices fell after Shanghai warehouse copper inventories rose 109.3%
# Strong Chinese copper demand amid tight supply helped Yangshan import copper premiums to $137.50 per ton
# Codelco Offers 2023 European Copper Bounties at All-Time High
