Copper prices rose as traders squared positions ahead of China’s public holiday.

Copper prices saw a solid 1.47% increase, closing at 719.7, as traders squared their positions ahead of a lengthy public holiday in China. Notably, inventories in Shanghai Futures Exchange-monitored warehouses fell by a significant 28.0% compared to the previous Friday, indicating a reduction in available supply. In contrast, copper stockpiles in LME-registered warehouses have surged nearly threefold since July, reaching 167,850 tons, the highest level since May 2022.

Chile’s Codelco, one of the world’s largest copper producers, announced that copper production is expected to rebound next year after a decline in 2022, primarily due to delays in key mine extension projects. Codelco’s Chairman, Maximo Pacheco, emphasized the importance of not delaying ongoing development projects. According to the International Copper Study Group (ICSG), the global refined copper market reported a deficit of 19,000 metric tons in July, a decrease from the 72,000 metric tons deficit in June. However, for the first seven months of the year, the market remained in a surplus of 215,000 metric tons, compared to a 254,000 metric tons deficit during the same period the previous year.

From a technical perspective, the copper market saw short covering, with open interest dropping by -17.7% to settle at 7,153. Copper prices increased by 10.45 rupees. Key support levels are at 711 and 702.1, while resistance is expected at 724.9. A potential breakout above this resistance could lead to a test of 729.9.