Copper prices rose by 1.05%, settling at 729.9, driven by a slight pullback in the US dollar and bolstered by fresh stimulus measures from the Chinese government. China’s announcement of a reserve requirement ratio cut in the next two weeks, providing CNY 1 trillion in liquidity, and indications of additional economic support contributed to positive sentiment. These measures, along with a pledge of CNY 2 trillion in foreign funds for an equity rescue package, aimed to address weakening demand and enhance confidence in the Chinese manufacturing outlook.

Concerns about long-term copper supply failing to keep pace with its crucial role in electrification further supported prices. The global refined copper market reported a deficit of 119,000 metric tons in November, compared to a deficit of 48,000 metric tons in October, according to the International Copper Study Group (ICSG). November’s refined copper output was 2.26 million metric tons, with consumption reaching 2.38 million metric tons. Adjusted for changes in inventory in Chinese bonded warehouses, there was a deficit of 128,000 metric tons in November, contrasting with a 70,000 metric tons deficit in October.

Technically, the market is experiencing fresh buying, with open interest rising by 8.71% to settle at 4618. Prices have increased by 7.55 rupees. Support is identified at 724.4, with a potential test of 718.7, while resistance is likely at 733.8. A move above could lead to testing 737.5. Traders are advised to closely monitor developments in China, global economic conditions, and copper supply dynamics for informed decision-making in the market.