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Below the "Quote - Copper" by Mr. Saish Sandeep Sawant Dessai, Research Associate- Base Metals, Angel One Ltd

After experiencing a decline that led to copper prices reaching their lowest point in nearly two months, a glimmer of hope has emerged as the metal embarks on an upward trajectory. Both the LME and MCX copper have rebounded by almost 2 percent from their recent lows, benefiting from several favorable factors.

Notably, even Shanghai copper witnessed a surge, reaching a nearly three-week peak. This surge is attributed to Beijing's fresh initiatives to invigorate its stock market and the growing optimism surrounding heightened demand in China, the world's largest consumer of the metal, as it prepares for its peak consumption season, bolstered by supportive policy measures. In a bid to bolster its struggling market, China has halved the stamp duty on stock trading starting from Monday.

In the past week, the metals sector concluded on a positive note, buoyed by improved demand prospects stemming from China. This positivity was complemented by a weaker U.S. dollar, influenced by signs of weakening consumer demand.

Additionally, the upbeat consumption data for copper in China and speculations regarding potential supportive measures from the Chinese government contributed to the metals' performance. This sentiment was reinforced by data from the International Copper Study Group, which highlighted robust apparent demand for copper in China throughout the first half of this year.

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