Copper yesterday settled at Rs 915.8, down -0.56%, as profit-taking emerged following a rally fueled by expectations of a U.S. interest rate cut and positive U.S.-China trade developments. Officials from both countries reached a framework agreement on TikTok, which supported market sentiment and softened the impact of losses. China reported a 5% decline in September copper production, removing around 500,000 tonnes from global supply, while inventories remain near multi-year lows.

LME stockpiles are roughly 40% below the five-year average, heightening supply concerns. Further disruptions persist as Freeport-McMoRan confirmed its Grasberg mine in Indonesia remains closed due to ongoing rescue operations for missing workers.

The global copper surplus fell to 36,000 metric tons in June from 79,000 tons in May. For the first half of 2025, the surplus totaled 251,000 tons, down from 395,000 tons during the same period in 2024. July production saw increases at Codelco in Chile and BHP’s Escondida mine, while Collahuasi output fell 27.2%. Meanwhile, copper inventories at Shanghai Futures Exchange warehouses rose 14.9% since last Friday, indicating some easing of supply constraints.

From a technical perspective, the market is in long liquidation, with open interest declining 10.42% to 4,334. Support is at Rs 913.2, with a possible test of Rs 910.5 if breached. Resistance is seen at Rs 919.2, with an upward target of Rs 922.5, suggesting short-term bullish attempts amid ongoing profit-taking.