Below is Quote on Copper by Mr. Saish Sandeep Sawant Dessai, Research Associate- Base Metals, Angel One Ltd
In the recently concluded week, we saw copper prices settling in the positive territory, however, the key economic gauge is still down more than 30% from the highs of March.
As the dollar continued to retreat from its record highs, the gains in copper from the previous week were further extended, making the dollar-denominated metal more affordable to holders of other currencies. Major copper producers who cut their output targets for the year to offset the demand worries were the other factor that kept the prices underpinned. However, as the much-anticipated US Fed rate hike decision is set to be announced today, the dollar continues to trade just below multi-decade heights. COVID-19 outbreaks and fears of a global economic slowdown also impacted the demand for industrial metals.
Due to a prolonged protest at one of the largest copper mines in the world, Las Bambas, owned by the Chinese company MMG Ltd, saw a 60 percent drop in output in the second quarter compared to the same period last year, the company has suspended its copper production targets for the year. Escalating protests have regularly disrupted the copper mine, which resulted in a 50-day operational stoppage earlier this year. The worldwide market for refined copper was oversupplied by 43000 MT in the first five months of this year, as opposed to a shortfall of 23000 MT during the same period in 2021, according to the ICSG's monthly report.
LME copper up 1.16% to $7624 a tonne, whereas on MCX, copper up 0.78% to 634.45/kg.
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