Copper prices rose for the 2nd straight day, after top producer Peru announced a year-on-year drop in copper production. Following November 2020’s 2.4% decline in production, December 2020 also saw a 1.6% drop when compared to production output for December 2019. According to ministry data, lower production from three of the country’s main production belts accounted for the fall in output.
This is the 2nd month in a row that copper output was declining in the world’s 2nd largest producer of the red metal. The data set was enough to influence copper prices to the upside, sending it toward $3.67 per pound in the global markets.
Copper production is yet to recover fully from the world’s top producers, after the coronavirus outbreak in several mining facilities and entire towns caused the Peruvian and Chilean governments to shutter production. There have also been a series of strikes by miners’ unions.
Copper price is 1.1% higher on the day.
Technical Levels to Watch For
Copper price has just violated the 3.6530 resistance within the last hour, putting that level at risk of being taken out by buyers. A successful break above the November 2011 high brings 3.7345 within reach as a new target to the north. 3.7945 and 3.8340 are additional targets.
On the flip side, a rejection and pullback which stems from an unsuccessful attempt at clearing 3.6530 brings in 3.5755 into the picture, with 3.4895 serving as an additional target to the south.
Copper Price; Daily Chart