Copper Prices Soar as PBOC Frees Up 600 billion Yuan in Funds
- 29-Mar-2023 5:42 PM
- Journalist: Motoki Sasaki
China: Copper prices settled 0.08% higher yesterday at 776.35 as the People's Bank of China officially lowered their reserve requirement ratio (RRR) to release 600 billion yuan of funds. This comes amid a recovery in Copper demand and an overall decline in Copper inventories which fell from 252,455 tonnes in late February to 161,152 tonnes today. Despite these improvements, looming threats of low supply have kept Copper prices nearly 7% higher year-to-date. Mining exports from major producer Peru dropped almost 20% annually in January due to widespread protests, while inventories have declined by 36% since peaking in February.
Copper prices could soar to record highs this year. The surge is attributed to depleting stocks of the metallic element globally, which has led to significant supply and demand imbalances. Further predicted a global shortage of visible Copper inventories by September. Copper market had a 103,000-tonne surplus in January - up from 10,000 tonnes in December.
Copper prices are on the rise, with the market under fresh buying and an increase of 2.76% in open interest to settle at 3912. Prices are up 0.65 rupees, with support at 773.5 and resistance likely seen at 779.5 levels. If prices move above this, they could test 782.5 points.