Metal prices are in the so-called lateral phase, caged in a trading range between 6300 and 6639 dollars. The international scenario retains and shows many shadows, but despite this, chinese imports grew in July, particular attention was put into the arbitrage phases. The Chinese customs agency showed data for about 762,211 tons of imported metal. Imports of copper concentrate were 1.795 million tonnes in July.
The increases were due not only to the arbitrage factor in trading on futures, but also behind a big bet at an international level. The rise in price does not correspond to the real economy considering that European foundries and in particular in Germany are suffering, due to the pandemic problem.The copper demand of the third party could almost certainly decrease, given that the only economy to pull is China, therefore there will be a phase of correction of the values of the production chain.
The month of august could present a momentarily salty account linked to both volatility and expectations in the industrial sector, bringing the metal towards the psychological level set at $ 6000 if not down to 5850.
From a technical point of view, it is necessary to pay attention to the resistance level at $ 6639, which if broken to the upside, prices would advance to $ 7200. The money in circulation is infinite and with that anything can happen. The markets, living in expectations, are far from the real economy but usually this gap is closed. We believe this hypothesis is valid at 30%.
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Commodities strategist, expert in supply chain market, procurement, forex and advisor Stablecoins. www.goldencross.io