Copper prices concluded the trading session with an increase of 0.84%, reaching Rs 1,283.8, buoyed by supply-side disruptions and a reduction in geopolitical tensions. The most immediate catalyst was the near-halt in production at Capstone Copper’s Mantoverde mine in northern Chile, where a prolonged labor strike resulted in the shutdown of the desalination plant, jeopardizing a total cessation of output. Widespread supply issues continue to affect key producers, as Chilean state miner Codelco has announced a 3% decrease in output compared to the previous year in November, while BHP’s Escondida mine has experienced a significant decline of 12.8%.

Peru’s November copper production experienced a decline of 11.2% year-on-year, underscoring persistent operational challenges in critical mining regions. These constraints stand in stark contrast to the mixed signals emanating from inventory levels. Shanghai Futures Exchange inventories experienced a week-on-week increase of 5.8%, and the global refined copper market continued to exhibit a surplus.

In contrast, availability in LME registered warehouses declined by 22%, reaching a six-month low, as metal consistently flowed toward the United States. Goldman Sachs has adjusted its first-half 2026 copper price forecast upward, highlighting the influence of scarcity premiums and constrained inventory levels beyond the U.S. However, the firm does not anticipate that prices will remain elevated above $13,000 per ton.

From a technical perspective, the market is experiencing short covering, evidenced by a significant decline in open interest of 24.38%, coupled with a price increase of Rs 10.75. Copper currently faces immediate support at Rs 1,272.1; a breach of this level may lead to a test of Rs 1,260.2. Resistance is identified at Rs 1,293.6, and surpassing this threshold could pave the way toward Rs 1,303.2.