The copper price is showing a downtrend this week within a new range.
Trafigura expects growth in demand for copper, aluminum and nickel as China's economy develops. The energy transition amid limited supply of some base metals by other producers is also a positive factor for the company's development.
Trafigura Executive Director Jeremy Weir met with representatives of Chinese trading firms and non-ferrous metal associations to discuss further cooperation.
Weir said at the China Non-Ferrous Industries Association (CNIA) conference that Trafigura sees more opportunities to develop business with the country.
The corporation still intends to increase its position in the fast-growing markets of metals used in battery manufacturing. At the same time, it forecasts an increase in the cost of copper and zinc amid the low level of reserves.
Copper prices are likely to reach record levels in the next 12 months, Trafigura said, pointing to China's economic recovery and supply shortages.
If demand for copper continues to rise and supply remains at current levels, then copper prices will rise. In addition, the forecast for a rise in copper and zinc prices could also be a factor affecting their prices.
The price of copper was also corrected on the base of the UN information. In July 2023, the International Seabed Authority will begin taking applications from companies planning to produce minerals from the bottom of the ocean.
The news from the UN foresees an increased supply of copper in the future. The market reacted accordingly and dropped the price of the red metal by 110 standard points. However, if copper production on the bottom of the ocean does not go as planned, the situation will strengthen the metal's upward position.
Price has formed a new volatility range with boundaries of 8655 - 9085. On the M30 timeframe the price is in the creation of the third upward wave.
A pullback from support at 8655 gives a signal to go up to resistance at 9085.
Signal:
The short-term prospects for copper are buying.
The target is at the level of 9085.
Part of the profit should be fixed near the level of 8955.
Stop-loss limit is at 8,725.
Bullish trend has a short-term character, so the volume of trade should not exceed 1% of the balance.
This content is for informational purposes only and is not intended to be investing advice.
