Copper prices experienced a decline, closing down by 2.28% at Rs 1,307.75, as profit-taking occurred following the recent surge fueled by expectations of constrained supply and concerns related to tariffs. Market participants express caution regarding the possibility that U.S. tariffs on refined metals, instituted during the Trump administration, may redirect global shipments to the U.S., thereby constricting availability in critical centers like London and Shanghai.

Notwithstanding the recent correction, the overall demand perspective continues to be positive, bolstered by increasing investments in power grid enhancements, renewable energy initiatives, and the expansion of data centers. Additionally, ongoing policy support and substantial liquidity in China provide a foundation for sustained price strength in the long term. Supply-side risks continue to be a concern. Capstone Copper has disclosed that production at its Mantoverde mine in Chile will be curtailed to approximately 30% due to strike action.

Chile’s national copper output experienced a decline of 7.18% year-on-year in November. Production disruptions at Freeport-McMoRan’s Grasberg mine in Indonesia underscore the fragility inherent in global supply chains. The International Copper Study Group indicated a refined copper surplus of 122,000 tons for the initial ten months of 2025, despite a robust 5.5% increase in refined usage.

From a technical standpoint, the market is experiencing renewed selling pressure, evidenced by a 5.12% increase in open interest concurrent with a price drop of Rs 30.55. Copper is currently encountering support around Rs 1,287.6; a decline beneath this level may lead to a test of Rs 1,267.3. On the upside, resistance is positioned at Rs 1,335.6, and a sustained movement above this threshold could propel prices toward Rs 1,363.3.