Copper dropped amid a stronger U.S. dollar and hazy demand outlook for the metal.
Copper experienced a slight dip of -0.83% settling at 704 due to a stronger U.S. dollar and uncertain demand. Despite supply disruptions, a 23.7% surge in China’s copper imports was observed in October. This rise was influenced by low stocks and consistent demand in various sectors. However, the market saw a decrease in copper inventories on the Shanghai Futures Exchange, albeit a subsequent 11.2% increase, offering a slight cushion post a significant drop.
The demand surge in September and October, typical for industrial activities, was expected, with increased consumer spending during the Golden Week holiday in China. On the other hand, the market remains vigilant about China’s demand outlook amid PMI data showing unexpected contractions in the manufacturing sector. Beijing’s plans to inject CNY 1 trillion in additional debt to stimulate manufacturing and infrastructure construction further impacted market sentiments.