Copper prices have been attempting to recover for the second day, but today the metal has drawn support from robust Chinese macro data. Copper is trading at $9,554/t, with the nearest recovery target at $9,581/t followed by $9,633/t.
China's exports in 1H 2021 surged by 38.6%, while trade between China and the US expanded by 45.7% during the reporting period. In June, exports increased by 32.2% YoY, and imports increased by 36.7%. These readings came in stronger than expected. China is the world’s largest copper buyer, and the stronger its performance, the more demand for the metal is expected in the future.
That said, copper is under pressure from expectations as US inflation data is scheduled for release this evening, and so far, all signs show that the headline figure could be a support factor the dollar. A rise in the dollar would limit strength in copper prices; the market sees this possibility and is in no hurry to take risks.