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Copper, which is up by about 1% in the European trading session, trending higher for the fifth consecutive day in the row by potential higher demand and supply concerns, pointing to a potential indication of economic growth while the production data looms.

• Producer Chile forecasted a 6% drop in output for 2023 which is supportive of the price.
• Higher demand might be not met due to soaring copper-dependent renewable energy sources, boosting prices.
• A cumulative supply shortfall of 50 million tonnes until 2030 is forecasted by major producers which are supportive.
• Mining giants warned that current global inventories are sufficient for only five days.
• China reopened borders with Hong Kong and lifted some restrictions for travelers raising expectations of higher demand which boosts the market of the base industry metal.
• The next day’s inflation data might be bullish by the forecasted drop in the rate which could lead to a dovish tone by the US central bank FED.
• The higher price of copper points to potential growth aspects of the global economy by prospects of a slowdown of the monetary tightening.
• The rise in copper might be supportive of the Australian dollar as well.

The median-term and short-term perspectives combined point to an upside bias for the moment. Market participants seemingly add to the core long positions around slight retracements inside of the prior day’s price range as the market trending higher imbalanced the fifth day in the row, may target this decade’s upper-value extreme as a rotational scenario.

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