OfBusiness Copper Daily Market Report | 20th April 2024

Price

• LME copper prices, yesterday, closed at $9,734.5/ton, Down by 0.11%%. Today, LME copper prices and trading are closed due to the weekly holiday.
• The most active SHFE 2404 Copper contract, Yesterday, settled at 78,880 yuan/ton. SHFE 2404 copper prices, trading is closed due to the weekly holiday
• MCX April 2024 copper prices, Yesterday, closed at Rs.838.3/kg, with no changes. Today, MCX trading is closed due to the weekly holiday.

Demand and Supply

• From the supply side, warehouse receipts began to be gradually released to the spot market, impacting premiums and discounts, but downstream purchases did not increase significantly, and spot supply remained ample. In terms of consumption, copper prices fluctuated higher, which dampened downstream purchasing enthusiasm, and the market maintained on-demand purchasing.
• According to the LME’s most recent statistics, copper stockpiles at LME-registered warehouses decreased by 800mt & stood at 122125 tons. As of April 19, SMM copper inventories across major Chinese markets stood at 403,500 mt, up 4500 mt from Monday and 220,000 mt higher than the same period last year. MCX copper inventories, as of April 19, stood at 1032126 tons.
• the UK and US metal sanctions on Russia, LME’s available inventory has dropped significantly, affecting market sentiment. In the domestic market, although copper prices decreased due to macroeconomic factors but still the downstream buyers are still waiting for more correction in the prices and hence are only purchasing as per order level

News

• Copper, gold to rise further on demand outlook, macro uncertainties. Metals with firm fundamentals and good liquidity have become more appealing to global financial investors amid receding U.S. interest rate cut bets, the conflict in the Middle East, and the war in Ukraine.
• The first quarter saw growing copper demand chiefly from the new energy sector, including electric vehicles and wind power, as well as the information technology sector like AI-related electric equipment and data centres.

OFB’s Opinion

• It is expected that geopolitical tensions and sanctions on Russia will persist, driving market risk aversion and pushing the US dollar index higher, thus negatively affecting copper prices.
• Monitoring the impact of potential Russian metal sanctions on copper prices is crucial, with further increases anticipated. Key support and resistance levels for MCX April Copper are identified, indicating potential price movements.