Copper experienced a decline of 1.28%, closing at Rs 1,233.65, influenced by increasing exchange inventories and lackluster trading activity in anticipation of China’s Lunar New Year holiday. LME warehouse stocks increased to 189,100 tons, marking the highest level since May, driven by new deliveries in Taiwan and the U.S.

Meanwhile, Shanghai Futures Exchange inventories surged to 248,911 tons, the highest since March, whereas Comex inventories persist at record highs due to ongoing daily inflows. The accumulation of inventories indicates a stable short-term supply alongside a decline in purchasing enthusiasm. Nonetheless, there exist favorable undercurrents. China has indicated intentions to broaden its strategic copper reserves and investigate a state-supported commercial stockpiling framework.

Meanwhile, Chile’s Cochilco has increased its price forecast for 2026 to $4.95 per pound, attributing this adjustment to resilient demand, a weaker dollar, and geopolitical risks, with expectations for prices to average $5.00 per pound in 2027. Chilean output is anticipated to increase this year, whereas Peru experienced an 11.2% decline in production in November. In November, the global refined copper market recorded a surplus of 94,000 tons, an increase from the surplus observed in October.

From a technical perspective, the market is experiencing new selling pressure, accompanied by a 1.88% increase in open interest. Immediate support is observed at Rs 1,226.6, with potential further decline toward Rs 1,219.4. Resistance is positioned at Rs 1,244.5; a breakout above this threshold may result in a test of Rs 1,255.2.