Copper increased by 0.27% to close at Rs 1,209.5, buoyed by positive sentiment regarding global manufacturing, the transition to green energy, and demand growth driven by artificial intelligence. The persistent supply constraints at significant mining operations have also provided support. Nevertheless, the increases were constrained by a prevailing risk-averse sentiment in international markets and subdued physical demand in China in anticipation of the February 15 holiday.

Spot premiums in China decreased to a discount of 60 yuan per ton, whereas the Yangshan import premium remained at a relatively low $34 per ton, indicating a measured approach to purchasing activity. Warehouse inventories on the SHFE increased by 9.5% week-on-week, contributing to short-term pressure. On the supply side, output from Chile continued to exhibit weakness. In December, production at Collahuasi experienced a decline of 12.1% compared to the previous year, whereas Escondida saw a more significant drop of 16.5%.

Peru also reported an 11.2% year-on-year decline in output for November. Notwithstanding this, the International Copper Study Group indicated a surplus of 94,000 tons in November, with the market continuing to exhibit a surplus for the year to date. China’s refined production is on an upward trajectory, with December output increasing by 9.1% compared to the previous year, despite a 6.4% decline in unwrought imports for 2025.

From a technical perspective, the market is experiencing short covering, evidenced by a 1.55% decline in open interest. Support is positioned at Rs 1,185.8, with a breach below aiming for Rs 1,162. Resistance is identified at Rs 1,229.4, with a potential upward movement suggesting further gains could reach Rs 1,249.2.