Copper price is being corrected in a wide range

24 April 2023 147
Copper price is being corrected in a wide range

The news from Gecamines, a state-owned company from the Democratic Republic of the Congo, indicates a future increase in copper supply in the market.

Gecamines and China Molybdenum, a Chinese manufacturing company, have defined an amount of royalty paid for the development of the Tenke Fungurume mine. The expected supply of copper and cobalt from the mine will exceed $1.5 billion on the global market. 

That's the amount estimated for the company's stockpiles in Congo's warehouses that have been accumulated since last July, Bloomberg reported. The stockpiling of copper and cobalt was caused by a ban on its exports imposed by the country's regulatory authorities. China Molybdenum was suspected of withholding information about the real volume of metal production.

After the conflict is resolved, about 160 thousand tons of copper and 16 thousand tons of cobalt will reach the world market. Large volumes of supply could have a significant impact on the quotations of these metals. But first, China Molybdenum and its partners need to solve logistics problems to ensure the delivery of existing stocks to the ports.

The proven reserves of the Tenke Fungurume mine amount to 176.8 million tons of ore containing copper. If production is maintained at 5.54 million tons, the mine will be operational for more than 30 years.

The expected copper supply from the Tenke Fungurume mine amounted to 160 thousand tons on the world market may affect the pricing of the red metal and cause the reduction of its value.

The copper price is correcting in a wide range of 8435 – 9175 in the H4 timeframe. The price of metal has moved beyond the upward corridor, indicating a change of trade within a flat.

Copper price is being corrected in a wide range - Photo 1

The price is going through a downtrend correction in the H1 timeframe. The curve of the Relative Strength Index indicator (standard values) has formed a downward corridor. The indicator data shows the convergence between the copper price and the RSI curve, which indicates the strength of the downtrend. 

The price rebounded from the buffered downward resistance line, giving a signal for sale.


Long-term prospects for copper are selling.

Target is at the level of 8480.

Part of the profit should be fixed around the level of 8655.

Stop-loss is around the level of 8925.

The bearish trend is short-term, so choose a trading volume of no more than 2% of your balance.


This content is for informational purposes only and is not intended to be investing advice.

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