“Copper Prices Skyrockets 5-Month High On Softer Rate Hike Pace & Weaker Dollar”

Copper prices in India hit 5-month highs and are now trading at Rs.697.55/KG in the MCX futures.

Mumbai, India. Copper prices in India surged 2.38% or Rs.16.20/KG from the previous settlement price, touching Rs.697.55/Kg on the MCX futures.

Copper prices rose sharply on Friday, owing to lower-than-expected US consumer prices in October, indicating a slower pace of US interest rate hikes. Investors were eagerly awaiting US consumer and unemployment data to see how the hawkish interest rate hike affected the US economy.

However, data showed that the US economy is stable and that the interest rate hike had little impact on the US economy. The country's official inflation rate fell to 7.7% in September, down from 8.2% in August and below the 7.9% increase predicted by economists. (From Trading Economics)

Furthermore, according to trading economics, the unemployment rate in the United States rose by 0.2 percentage point to 3.7 percent in October 2022, up from 3.5 percent in September and slightly higher than market expectations of 3.6 percent. However, higher interest rate hikes have little effect on the unemployment rate.

On the other hand, the US dollar index fell as a result, making greenback-priced metals more affordable to holders of other currencies. Analyzing the current wealth of the US economy reveals that the US Federal Reserve may relax down its interest rate hike path, boosting metal demand in the coming days.

Technically, the Copper market is under bullish trend and gained higher from the previous trading session. Still, Copper prices are under pressure because of low inventories in global warehouses and weakened demand concern from the top industrial metals consumer, “China.”

As a result, we can expect a sharp increase and decrease in Copper prices because of bearish trends in the near future. In addition, we must wait and see that Copper prices will continue to stay at high levels in the coming days.

Dr Copper, the New Gold, is Trading at Rs.697.55 per KG in the MCX Futures. 

Similarly, Copper Scrap prices have risen and are now trading at,

Copper Cable Scrap Prices (Mumbai): Rs.665/KG

Copper Heavy Scrap Prices (Mumbai): Rs.656/KG

Copper Wire Scrap Prices (Delhi): Rs.618/KG

Copper Utensil Scrap Prices (Mumbai): Rs.593/KG

The COMEX (US Metal Exchange) - US Copper prices rose 6.03% from the previous closing price, hitting $3.87/Lbs in the CME futures. Copper prices in the United States reached nearly 5-month highs, boosted by weaker-than-expected US inflation data and a slower dollar index.

Global supplies and demand have remained tight, which has helped the Copper prices higher. Copper inventories are relatively low, with LME warehouse stocks falling 5,375 tonnes to 88,600 tonnes, the lowest since April. Copper inventories in SHFE-monitored warehouses fell 6.9% week on week to 59,064 tonnes. (Source – Market Screener)

Meanwhile, the rising covid caseload ensures that China will not relax covid restrictions in the long run unless it achieves the goal of a "Zero-Covid Policy." The country's harsh policies have once again raised concerns about its economic growth, industrial activities and dragged down metals demand.

According to the National Business Daily, the Chinese province of Henan approved 26.2 billion yuan ($3.65 billion) in financing for troubled real estate projects and to ensure timely deliveries of pre-sold homes. Furthermore, the Politburo Standing Committee meeting, according to ANZ Research, suggested that Beijing would take more targeted measures to avoid economic damage.

According to this country's official statements, we can expect Chinese industrial metals import volume to remain stable in times of covid limitations. However, Chinese economic data and rising coronavirus cases in the world's largest metals consumer dampened risk sentiment in the face of supply constraints and increased metals demand.

Other major economies, besides China, all other economies are facing higher interest rate hikes, dampening industrial metals demand concerns and weakening manufacturing activity, pressuring Copper prices.

The Reddish Gold Metal is Trading at $3.87 per Pound in the CME futures. 

Copper Scrap prices in the United States have also increased and are now trading at,

Copper No.1 Scrap Prices (US): 3.12 USD/Lbs.

Copper No.2 Scrap Prices (US): 2.70 USD/Lbs.

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