Copper (XCU) remains strong near the record high after rising for five straight sessions. The drop in Chinese inventories and higher Shanghai spot premiums show that the supply remains tight in the short term. The disruptions at the mine also support the price. But the weak import demand and pressure in the property sector in China may slow the rally. The technical outlook remains positive while the ratios between copper, gold and silver suggest improving strength in copper. This article presents the important fundamental, technical and risk factors that may shape the next move in copper prices.
Copper Price Forecast: China Inventory Drop Keeps Record High in Sight
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Key Points:
- Falling Chinese inventories and higher spot premiums support copper near its record high.
- A break above $7.10 could open the way towards $7.50.
- Weak import demand and China’s property slowdown remain the main downside risks.