"Copper Prices Settled Flat Amid Weaker Dollar Index & China's Property Support"

Copper prices in India today are trading at Rs.675/KG in the MCX futures.

Mumbai, India. Copper prices in India are flatly down for more than three weeks from recent 5-month highs of Rs.703.50/KG and are now trading at Rs.675 per KG in the MCX futures. Copper prices are almost 24% down from March's record high levels of Rs.871/KG in the MCX market.

Copper prices were under pressure on Saturday due to a weaker dollar index, China's supportive measures for the property sector, and the possibility of the Federal Reserve slowing interest rate hikes.

China's top base metal consumer is currently experiencing record levels of covid cases in major industrial hubs. Expanding lockdowns in the country are hurting Base Metals demand in the short term, resulting in lower Copper prices.

China reported 35,183 new COVID-19 infections on Nov. 25, of which 3,474 were symptomatic, and 31,709 were asymptomatic, the National Health Commission said on Saturday, setting a new high for the third consecutive day. (Source – Economic Times)

China's growing number of COVID-19 cases has dampened expectations that demand growth in the world's largest metals consumer will slow this year. Large cities such as Beijing, Shanghai, and Guangzhou have enforced prevention measures, possibly restricting economic activity.

Meanwhile, investors anticipate that China's strict measures to combat the coronavirus pandemic and a deepening slump in the country's massive real estate sector will weigh on refined copper demand in 2022.

However, copper demand in China will grow faster in 2023 due to rising investment in renewable energy projects and electric vehicle production, which will boost the growth rapidly. However, China is expected to relax some COVID-19 restrictions next year, providing some relief to the world's second-largest economy. According to the Chinese general, copper demand from the auto sector will increase by up to 160,000 tonnes next year, following demand growth of between 100,000 and 120,000 tonnes in 2022.

China's state-owned banks have launched a concerted effort to strengthen the finances of the country's struggling property developers, with more than Rmb220bn ($30.7bn) being announced on Wednesday in new credit lines. China has increased measures to support its economy and the metals-intensive property sector, which will increase demand for industrial metals and Copper Base Metals in 2023.

Technically, the Copper market improved compared to the previous quarter of 2022. And because US interest rates are expected to slow in the coming days, and China copper demand is expected to rise due to surging EV output and power investment, copper prices are expected to hit new highs in the coming days.

Dr Copper - the New Gold, trading at Rs.675 per KG in the MCX Futures.

Copper Scrap prices in India today are trading at,

Copper Cable Scrap Prices (Mumbai): Rs.666/KG

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

Copper Wire Scrap Prices (Delhi): Rs.626/KG

Copper Utensil Scrap Prices (Mumbai): Rs.590/KG

The COMEX (US Metal Exchange) - Copper prices in the United States are currently trading at $3.62/lb on the CME. Copper prices in the United States have fallen following the announcement of the Fed Reserve's smaller interest rate hike, which has weakened the dollar index.

According to minutes from the November meeting released Wednesday, Federal Reserve officials expect to switch to smaller interest rate increases "soon." As a result, the US dollar fell to near one-week lows, making green-priced metals cheaper for buyers using other currencies and supporting lower copper prices.

In the first nine months of this year, the global copper market was deficient, and copper producer Codelco predicted that millions of tonnes would undersupply the trade over the next decade. Meanwhile, copper inventories in LME-registered warehouses have remained relatively stable at 90,000 tonnes.

At an industry conference, Codelco Chairman of the Board, Maximo Pacheco, stated that while a short-term surplus is expected due to new projects in Chile, Peru, Congo, and Tibet, medium to long-term demand will outstrip supply further down the line.

"There's going to be an oversupply (of copper) for a year or two. There's some slowing growth, and a few new projects are coming up simultaneously," BHP's Chief Development Officer Johan van Jaarsveld told Reuters in an interview. In contrast, a survey found that Japan's manufacturing activity contracted at the fastest rate in two years in November, as demand deteriorated due to high inflationary pressures.

The Copper market is currently in negative territory. Still, analysts expect China's copper demand to surge in 2023, fueled by a thriving electric vehicle sector and rising investment in renewable energy projects.

Meanwhile, Chilean state miner Codelco, the world's largest copper producer, denied on Wednesday that it planned to reduce copper shipments to China next year due to production concerns. As a result, low Copper production and China's upcoming brisk demand outlook will propel copper prices higher sooner.

The Reddish Berry Base metal is Trading at $3.62 per Pound in the CME futures.

Copper Scrap prices in the US today are trading at,

Copper No.1 Scrap Prices (US): 3.10 USD/Lbs.

Copper No.2 Scrap Prices (US): 2.71 USD/Lbs.

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