China Factory Activity Boosts Copper Prices Amid Global Deficit
Copper prices in India settled flat on Friday, despite improved Chinese factory activity that provided support to the metal. According to Kedia Advisory, copper prices settled marginally lower by 0.02% at ₹1,401.65. The improvement in Chinese factory activity was reflected in the official manufacturing PMI, which rose to 50.1 in September from 49.8 in August.
However, Chilean copper production declined 12.8% year-on-year in August to 369,500 tonnes due to storm-related disruptions and lower ore grades. The global refined copper market remained in deficit, with a 51,000-tonne shortfall in July compared with 74,000 tonnes in June.
Technically, copper is under long liquidation, with open interest declining 1.35% to 8,818 while prices fell ₹0.25. The support level for copper prices is placed at ₹1,397.8, and a break below this level could lead to ₹1,393.9.