Copper yesterday concluded with a slight increase of 0.02% at Rs 1000.3, buoyed by a reduction in trade tensions between the U.S. and China, alongside ongoing supply concerns from significant global producers. Market sentiment exhibited a degree of caution in anticipation of significant Chinese economic data and the forthcoming U.S. developments. The outlook for Federal Reserve policy in December remains clouded by uncertainty regarding potential rate cuts, particularly in light of the ongoing government data blackout.

Supply-side disruptions at mines in Indonesia and Chile, coupled with reduced output from Glencore and Anglo American during the first three quarters of the year, have persistently supported price levels. The suspension of operations at Freeport-McMoRan’s Indonesian mine, which constitutes more than 3% of global supply, has further constrained near-term availability.

Meanwhile, the Yangshan copper premium has decreased to $35 a ton, indicating a decline in Chinese demand, while copper inventories on the Shanghai Futures Exchange have dropped by 1% compared to last week. In October, China experienced a 9.7% decline in copper imports, totaling 438,000 tonnes, indicative of consumer caution in the face of high prices. The International Copper Study Group has projected a global refined copper surplus of 178,000 tonnes for 2025, which will be succeeded by a deficit of 150,000 tonnes in 2026. Refined usage is anticipated to increase by 3% in 2025.

From a technical perspective, the market is experiencing new buying activity, evidenced by a 0.65% increase in open interest to 9,738, alongside a price rise of Rs 0.25. Copper establishes a support level at Rs 998.2, with a breach below this point likely to challenge the Rs 995.9 mark. Conversely, resistance is identified at Rs 1003.5, and an upward movement beyond this threshold may lead prices toward Rs 1006.5.