Copper prices declined by 0.36% to close at Rs 1,108, influenced by increasing oil prices and persistent tensions in the Middle East, which have heightened concerns regarding inflation and global economic growth. The surge in energy prices has prompted a more prudent approach from central banks, as policymakers indicate that inflationary pressures could postpone or potentially reverse anticipated rate reductions. This has exerted pressure on sentiment throughout the base metals complex.

On the supply side, inventories present a nuanced variable. Stocks in LME warehouses have risen to 334,100 tonnes, marking the highest level since 2019, which suggests significant near-term availability and exerts downward pressure on prices. Nonetheless, inventories monitored by the Shanghai Futures Exchange experienced a reduction of 5.2% in the previous week, providing a degree of support. The fundamental outlook continues to be positive.

Robust factory data emerging from China, coupled with post-Lunar New Year restocking efforts—especially within the power sector—are anticipated to bolster demand. Prominent institutions maintain an optimistic medium-term outlook, pointing to the constricting supply-demand dynamics and an expanding market deficit anticipated in the years ahead. Trade data indicates that China’s copper imports experienced a year-on-year decline of 16.1% in early 2026, whereas concentrate imports increased, highlighting a shift in procurement patterns.

From a technical perspective, the market is experiencing long liquidation, as evidenced by a decline in open interest of 11.87% to 10,494, accompanied by a price decrease of Rs 3.95. Immediate support is identified at Rs 1,093.1, with potential further decline towards Rs 1,078. Resistance is established at Rs 1,128.8, and a breach above this level could propel prices toward Rs 1,149.4.