Copper prices experienced a modest decline in the previous session, closing 0.31% lower at Rs 1,193.45, primarily influenced by increasing inventories on the London Metal Exchange. Stocks in LME warehouses rose by 2,450 tonnes to reach 284,325 tonnes, marking the highest level since October 2024, with significant inflows observed in Singapore and New Orleans.

Inventories on the Shanghai Futures Exchange increased by 8.59% compared to the prior week, heightening apprehensions regarding the immediate supply situation. In China, the leading consumer of copper globally, policymakers have established a 2026 economic growth target of 4.5–5% as the nation navigates ongoing deflationary pressures and elevated U.S. tariffs.

Concurrently, the government’s 15th Five-Year Plan underscores the necessity for enhanced investment in innovation, high-tech sectors, and research, while also promoting increased household consumption. In light of a cautious outlook, the release of better-than-anticipated private factory data from China served to mitigate the decline in copper prices. Longer-term sentiment continues to exhibit a constructive outlook. Goldman Sachs now anticipates copper prices will hit $12,200 per ton by the conclusion of 2026, whereas UBS projects prices could approach $15,000 per ton within the next 13 months, driven by increasing global consumption and expanding supply deficits.

From a technical perspective, the market is experiencing long liquidation, as evidenced by a 0.71% decline in open interest to 15,932, alongside a price decrease of Rs 3.75. Copper exhibits immediate support at Rs 1,183.3, with the possibility of further declines potentially probing Rs 1,173.2. On the upside, resistance is observed at Rs 1,201.4, and a breach above this threshold may propel prices toward Rs 1,209.4.