Concerns about growing stocks at the London Metals Exchange (LME), which reached 174,900 tons a 225% rise since July caused copper to tumble 1%, ultimately ending at 713. In November, China released mixed industrial statistics that increased demand uncertainties.
Up to 1% of global copper supply was impacted by First Quantum’s operations being suspended due to disruptions in Panama, which helped copper prices. The International Copper Study Group (ICSG) reports that in September, there was a 55,000 metric tons deficit in the worldwide refined copper market, up from a 21,000 metric tons deficit in August.
The fragile equilibrium of the market was influenced by the unrest in Panama and the fall in Chilean output. The global surplus of 17,000 metric tonnes in the first nine months of the year was contrasted with a deficit in September’s adjusted numbers, highlighting the complex dynamics of copper.
From a technical perspective, the market saw new selling, as open interest increased by 11.93% to close at 5563 and prices fell by -7.2 rupees. Copper’s support is at 709.7, with levels as high as 706.4 perhaps tested. Testing at 723.8 could follow a breakthrough that leads to resistance at 718.4.
