Copper prices hit a more than a week high. The metallurgy sector is supported by the U.S. dollar’s decline after the inflation data release in the United States. The weak dollar makes commodities more expensive for owners of other assets.
The influence of reduced copper and copper products imports in China on the metal price is represented on a chart. China’s copper imports fell 19% in March from a year earlier, customs data showed, as domestic production climbed and higher global prices restrained interest.
Imports of unwrought copper and copper products totalled a bit more than 408,000 tonnes in March, compared with imports of about 504,000 tons during the same period in 2022. Copper arrivals in the first quarter of the year stood at 1.3 million tonnes, down 12.6% from the same period a year ago.
The decline in imports runs counter to investors' expectations of increased metal consumption in China amid the removal of COVID-19 restrictions. Doubts about the strength of post-COVID factory recovery were strengthened by weaker global demand and a property market downturn.
Domestic production of refined copper jumped 14% on the year to around 859,000 tons in March, according to a survey by state-backed research house Antaike.
Higher domestic production and the rise in metal prices in the global market have caused reduced imports. Doubts about the strength of post-COVID factory recovery arose, while the property market slumped, which may keep the red metal's price down. However, China’s increased domestic production of refined copper may counterbalance some of the negative factors and support copper prices in the short term.
Copper prices have moved beyond the 8655–9085 range, signaling further increases.
On the H4 timeframe, the red metal price is forming the third ascending wave. The breakout of the upper boundary of the first wave at the level of 9085 gives the growth signal.
Signal:
Copper’s medium-term outlook is to buy.
The target is at the level of 9750.
Part of the profit should be fixed at the level of 9300.
A stop-loss should be placed at the level of 8785.
The bullish trend is of a short-term nature, so it is suggested to limit the trading volume to no more than 2% of your capital.
This content is for informational purposes only and is not intended to be investing advice.
