Copper prices saw a -0.48% decrease at the close, closing at 718.85, as worries over demand reappeared in the wake of disappointing Chinese statistics. October saw a third straight month of improvement in China’s industrial earnings, although the annual growth rate decreased to 2.7%. This number represented a notable slowdown from the 17.2% gain in August and the 11.9% increase in September, indicating that Beijing may need to provide more policy assistance in order to stimulate development in the second-largest economy in the world.
Authorities are under pressure to think about providing additional support to manufacturers as the economy approaches 2024 due to the slower rate of profit growth, particularly in light of the weakening global demand. China’s economic recovery from the COVID-19 pandemic has proven to be particularly difficult, hindered by a number of causes including poor global growth, housing market turmoil, dangers associated with local government debt, and geopolitical tensions.
We eagerly await surveys of buying managers in China’s manufacturing sector later this week, which are vital for determining the demand for metals. The market is going through a protracted liquidation, according to technical analysis, with a -0.32% decline in open interest that ended at 5001. 717.1 is the support level, and a breach below might lead to a test of 715.2, even if prices have dropped by -3.45 rupees. A breakthrough might push prices up to 725. Resistance is anticipated at 722.