Copper Price Volatility Continues Amid Supply Concerns and Economic Uncertainties
Copper prices remain volatile after recording its first weekly loss in five weeks. The red metal has found support from surging US imports and eased bets on a September interest rate hike, but rising inventories and economic uncertainties have capped gains.
The influx of copper into the US market has been significant, with over 200,000 tonnes imported in July, the highest monthly total in 12 years. This, combined with existing stockpiles in Comex warehouses and other storage facilities, means that the country's inventory now exceeds 1 million tonnes.
Despite these supply concerns, mining disruptions in top producers like Chile, strong exports, and positive demand expectations have continued to support the long-term bullish outlook for copper. However, the increased copper stockpiles in the UK and China warehouses have eased some pressure off copper prices.
The market will be watching the US dollar's performance ahead of July's PCE price index, as well as Fed Chair's speech, which could impact the red metal's price movements. Copper price may continue to find support near the 25-day EMA at $6.50, but a decline past that zone could lead to a bounce off the steady support along the 50-day EMA at $6.43.