- Summary:
- Copper prices drop this Friday, as demand concerns from steel production curbs in China and rising bond yields in the US put pressure on metal assets.
Copper prices fell on Friday after China’s measures to combat pollution sparked demand concerns. Investors, worried that new measures to combat pollution in China could spark reduced demand, put the red metal on offer by 0.7%.
China has asked government officials in the industrial city of Tangshan to clamp down on steel firms that are not adhering to production curbs that were put in place to reduce atmospheric pollution. Rising bond yields in the US and the strength this is bringing to the US Dollar is also putting metal traders on edge.
Inventory at LME warehouses is also starting to rise after several weeks of shortfalls, adding another layer to the list of fundamentals that are dampening copper prices.
Technical Outlook for Copper Price
The rising trendline on the 4-hour chart provides short-term support to copper price action. A breakdown of this trendline allows 3.9970 to become the next downside target. Below this level, 3.9535 and 3.8340 remain additional downside targets.
On the other hand, a bounce from the trendline could favour a push towards 4.2015, with 4.2755 and 4.3995 serving as potential targets to the north.
Copper Price; 4-Hour Chart
