The price of copper futures, on COMEX, is up 0.43% at $4.6720 per pound on Thursday.
Copper prices bounced back on Thursday, after declining on Thursday, as a spate of production problems threaten to cut supply. Also boosting metals was a weaker dollar, pushing greenback-denominated metals higher as it becomes cheaper for buyers using other currencies.
Estimates of annual copper production in Chile, the global top copper producer, has been revised lower as the country faced production complication over conflicts between the mining companies and workers. The country is rife with protests by workers and environmental activists in major mines across the country, in addition to the threat of road blockages, worker shortages due to the rising COVID-19 infections, and threats of a work stoppage over alleged breaches in workers’ contract.
Meanwhile, in Peru, the world’s second-largest copper producer, a state of emergency will be declared as protests hit top mines in the Andean nation, halting 20% of the country’s copper output. Impoverished communities have been staging protests against mining companies, complaining that the mineral wealth hasn’t trickled down to their communities despite high international prices.
An increase in copper production is necessary as the world aspired to transition to cleaner, green energy. For instance, the European nations are searching for alternative green energy sources as it plans to cut their dependency on Russian energy imports.
Stakeholders in the red metal are also looking forward to the COVID policy of the Chinese government as major industrial hubs in the world’s factory enter 4.81their fourth week of lockdown.
On the technical side, the RSI of Chicago Copper futures stood at 48.22 and is currently trading below MA (5) and MA (20) but below MA (50). So, BUY position can be taken with the following target and stop-loss: