Copper experienced a rebound of 2.65%, closing at Rs 1,181.35. This movement was primarily influenced by short covering, as investors took the opportunity to purchase following recent weakness in a thin trading environment. Nonetheless, the increases were constrained by the accumulation of exchange inventories. Stocks in London Metal Exchange-approved warehouses increased for a 12th consecutive session to 224,625 tonnes, marking the highest level in almost 11 months, while Shanghai inventories also experienced a 9.5% rise, highlighting near-term oversupply concerns.

The LME cash contract trading at a $100 discount to the three-month contract further indicated a comfortable prompt availability. The fundamental outlook continues to present a mixed scenario. The International Copper Study Group indicated a refined surplus of 94,000 tons in November, contributing to a cumulative surplus of 206,000 tonnes for the initial eleven months of the year.

In the interim, China experienced a 6.4% decline in unwrought copper imports in 2025, while refined output demonstrated robust growth, increasing by 9.8% year-on-year during the initial eleven months. Supply disruptions in Chile and Peru, coupled with China’s intentions to augment strategic reserves, are providing medium-term support. Chile’s Cochilco has adjusted its price forecast upwards, attributing this change to robust demand and geopolitical uncertainties.

From a technical perspective, the market is experiencing short covering, evidenced by a 2.39% decline in open interest. Support is identified at Rs 1,162.6 and Rs 1,143.8, whereas resistance is positioned at Rs 1,192.4; a breach above this level may aim for Rs 1,203.4.