Copper prices hit a record high as supply shortages intensified following China's decision to halt sulfur exports, a consequence of Middle East supply disruptions critical to the copper refining process. The closure of the Strait of Hormuz continues to constrain sulfur supply, primarily impacting African copper producers. These nations, accounting for 20% of global supply, lack domestic sulfuric acid and depend heavily on imports from the Gulf and China.
Beyond copper, industrial metals see robust demand from the energy transition and AI infrastructure. This trend is evident in China's strong Apr export data, which grew over 14% YoY, driven largely by high-tech sectors. Consequently, copper prices might remain elevated until the Strait of Hormuz reopens. However, the probability of a full reopening in the short term remains low due to ongoing nuclear tensions.
Technically, XCUUSD trades near resistance at 6.5100, maintaining strong bullish momentum supported by expanding EMAs. A breach above 6.5100 might lead XCUUSD to further strengthen toward the 76.8% Fibonacci extension at 6.5720, potentially reaching 6.7650. Conversely, if the price fails to hold above 6.4200, it might find support at the 50% Fibonacci extension at 6.3140.
By Van Ha Trinh - Financial Market Strategist at Exness
Beyond copper, industrial metals see robust demand from the energy transition and AI infrastructure. This trend is evident in China's strong Apr export data, which grew over 14% YoY, driven largely by high-tech sectors. Consequently, copper prices might remain elevated until the Strait of Hormuz reopens. However, the probability of a full reopening in the short term remains low due to ongoing nuclear tensions.
Technically, XCUUSD trades near resistance at 6.5100, maintaining strong bullish momentum supported by expanding EMAs. A breach above 6.5100 might lead XCUUSD to further strengthen toward the 76.8% Fibonacci extension at 6.5720, potentially reaching 6.7650. Conversely, if the price fails to hold above 6.4200, it might find support at the 50% Fibonacci extension at 6.3140.
By Van Ha Trinh - Financial Market Strategist at Exness
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.