LME 3M Copper prices have risen significantly from their previous low of $9131.75 to $9735. Copper prices have surged as a result of China's floods, which have heightened physical demand forecasts. A weakening of the US dollar and a drop in stocks are also helping to bolster copper prices. Floods in China's Zhengzhou, in the province of Henan, have exacerbated supply issues and demand for infrastructure repair.
As of July 27, 2021, LME Copper warehouse stock stood at 225225 metric tonnes, up 14250 metric tonnes in the prior 30 days and 70625 metric tonnes in roughly three months. Despite the fact that SHFE Copper warehouse stock has decreased dramatically in the recent 30 days. SHFE warehouse copper inventory is now at 49365 metric tonnes, down 52990 metric tonnes in the last 30 days and 78376 metric tonnes in nearly three months as of July 27, 2021.
Gains in Copper prices were limited by concern about industrial metals demand after {{|Goldman Sachs}} on Monday cut its US Q3 GDP forecast to 8.5% from 9.5%. On other economic data front, The German IFO business climate for July unexpectedly fell -0.9 to 100.8, weaker than expectations of an increase to 102.5. The Japan Jul Jibun Bank services PMI fell -1.6 to a 5-month low of 46.4.
June new home sales in the United States surprisingly plummeted -6.6 percent m/m to a 14-month low of 676,000, falling short of expectations of a 796,000 increase. In addition, the July Dallas Fed manufacturing activity index unexpectedly plummeted -3.8 points to a 5-month low of 27.3, falling short of forecasts of a rise to 31.6.
The global spread of the Delta variant of Covid is also affecting industrial metals consumption, which will stymie global economic recovery. The number of people globally infected with Covid increased by 3.729 million in the week ending July 25, the greatest in two months. The seven-day average of new Covid infections in the United States hit a two-and-a-half-month high of 52,061 on Sunday.
Copper LME 3M prices are projected to find support near $9656-$9450, while significant resistance is likely to be found around $9953-$10054.