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Copper yesterday settled down by -0.51% at 725 on low-level recovery after prices saw pressure on worries over China’s property sector and pressure from a stronger dollar. China’s new bank loans tumbled in July and other key credit gauges also weakened, even after policymakers cut interest rates and promised to roll out more support for the faltering economy. New data magnified concerns over China’s economic recovery and further pared the outlook for base metal demand in the world’s top consumer.
Despite the series of concerning data, markets continued to be sceptical about economic support from Beijing as public bodies refrained from signalling that significant stimulus could be passed. Still, the decline was limited by evidence of lower supply, risking wide shortages as economies transition to copper-intensive green technologies. Codelco’s output sank by 14% in the first half of the year. Additionally, the latest data showed that global inventories are 26% down year-to-date. Copper inventories in warehouses monitored by the Shanghai Futures Exchange rose 1.5% from last Friday, the exchange said. China’s June cathode output jumped 15% from a year earlier, expecting August output to rise further to a historic high.
Technically market is under long liquidation as the market has witnessed a remain unchanged in open interest by 0% to settle at 5894 while prices are down -3.7 rupees, now Copper is getting support at 721.9 and below same could see a test of 718.7 levels, and resistance is now likely to be seen at 728.9, a move above could see prices testing 732.7.
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