Copper prices increased by 1.18% to close at Rs 1,109.7, buoyed by positive sentiment regarding China’s dedication to an active fiscal policy in the coming year and the U.S. Federal Reserve’s recent interest rate reduction and expansion of its balance sheet. China’s official Xinhua news agency has indicated that policymakers are set to sustain fiscal stimulus in 2026, which has positively influenced sentiment regarding base metals. Nonetheless, the increases were somewhat limited by profit-taking following remarks from certain Fed officials who indicated a measured approach regarding the speed of additional rate reductions.

On the supply side, inventories in Shanghai Futures Exchange warehouses experienced a week-on-week increase of 0.5%, reaching 89,389 tonnes. Concurrently, the proportion of China-origin copper in LME warehouses rose to 85% in November, indicative of robust export flows supported by advantageous arbitrage conditions.

Chinese copper inventories on the LME surged to 130,225 tonnes, underscoring the immediate supply accessibility in international markets. Fundamental indicators exhibit a mixed performance. The International Copper Study Group reported a 51,000-tonne global refined copper deficit in September, compared with a surplus in August, underscoring a tightening balance. ANZ Research anticipates that copper prices will stay above USD 11,000 per tonne in 2026 and may reach USD 12,000 by the end of the year. This projection is based on increasing demand growth and supply limitations, particularly due to China’s intended 10% reductions in smelter output in 2026.

From a technical perspective, the market is experiencing renewed buying activity, as evidenced by a 2.44% increase in open interest to 7,526, coupled with a price increase of Rs 12.9. Copper exhibits support at Rs 1,098.7; a breach beneath this level may lead to a test of Rs 1,087.6. On the upside, resistance is observed at Rs 1,122.7, and a sustained movement above this threshold could drive prices toward Rs 1,135.6.