Sentiment has been bearish since the start of the week after Chinese manufacturing data came in below expectations, reigniting fears of a demand slowdown from the globe’s biggest source of demand. Last session’s selloff was triggered by a large build-up in the London Metal Exchange’s (LME) copper inventories. Stocks available for delivery at LME-registered warehouses soared by 32.00% or 38,950 tonnes, to 160,200 tonnes, the highest since mid-April.
Copper futures for May delivery are currently hovering around $2.530 per pound. Technical analysts reckon that the presence of a strong support zone around $2.500 could see prices rebounding intraday. The short-term trend remains overtly bearish, with any dip below the support region likely to push prices all the way to $2.450 per pound.