Copper settled at 838.3 with a 1.02% increase yesterday. The increase was due to growing demand and supply concerns, which led to lower output commitments by Chinese copper smelters. This decline in activity levels was caused by the continuous problem of poor copper ore availability. Additionally, smelting fees have dropped to multi-year lows due to the industry’s overcapacity and disruptions in important mining regions like Zambia and Panama.
Chinese demand for copper is improving, with a 16% increase in unwrought copper imports in March. This increase is in line with robust manufacturing PMIs, indicating that industrial activity may be about to pick up. Additionally, China produced 7.9% more refined copper in March of last year than the previous year, a sign of strong domestic demand.
