Copper prices experienced a significant correction, closing down by 3.55% at Rs 1,232.6, as traders took the opportunity to realize profits following recent record highs. The decline occurred notwithstanding a generally favorable macroeconomic and structural environment. The US economy experienced its most rapid growth in two years in the third quarter, propelled by robust consumer spending, exports, and industrial activity, all of which support copper-intensive sectors.

Structural demand continues to exhibit strength, bolstered by a surge in investments directed towards electric vehicles, renewable energy, enhancements to the power grid, and infrastructure related to artificial intelligence. Supply-side constraints endure after years of insufficient investment, mining disruptions, and intentions by China’s leading smelters to reduce output by more than 10% in 2026 to tackle overcapacity and unfavorable processing fees.

According to the International Copper Study Group, there was a refined copper surplus of approximately 122,000 tonnes in the first ten months of 2025, despite a 5.5% increase in apparent refined usage, which underscores the strength of demand in the market. In November, China experienced a second consecutive month of declining copper imports, which decreased by 2.51% to 427,000 tonnes, as high prices dampened purchasing enthusiasm. In the interim, stockpiles within the Shanghai Futures Exchange warehouses surged by 16.6% on a week-on-week basis, while the increasing Yangshan premiums, which have ascended to $55 per tonne, indicate a constricted supply of imported materials.

From a technical perspective, the market is experiencing long liquidation, evidenced by a 5.1% decline in open interest, which now stands at 12,410, alongside a price decrease of Rs 45.35. Support is identified at Rs 1,158.1; a breach of this level could lead to a test of Rs 1,083.6. Resistance is positioned around Rs 1,350, and a breakout may lead to an increase towards Rs 1,467.4.