Copper prices experienced a decline of 0.17%, concluding at Rs 1,159.55, reflecting a cautious market sentiment influenced by persistent geopolitical tensions and macroeconomic uncertainty. Market participants are attentively monitoring the situation following U.S. President Donald Trump’s ultimatum regarding Iran, as the absence of a definitive timeline for resolution has heightened apprehensions about global economic growth. Additional pressure is arising from abundant supply conditions, as inventories on the London Metal Exchange remain close to six-year highs.

On the supply side, significant Chinese smelters are intending to sustain or potentially augment output in 2026, notwithstanding previous pledges to reduce production. Nevertheless, there are certain encouraging indicators—copper inventories on the Shanghai Futures Exchange have significantly decreased in recent weeks, suggesting a rise in demand in anticipation of China’s peak consumption season.

In February, Chile’s production experienced a significant decline, reaching its lowest level in several years. On a global scale, the market persists in demonstrating a slight surplus, with prominent institutions such as Goldman Sachs and Citi adopting a more cautious stance, referencing possible oversupply and a deteriorating economic forecast. Import data from China exhibits a nuanced landscape, characterized by a decline in refined copper imports alongside an increase in concentrate inflows.

The market is currently experiencing renewed selling pressure, characterized by an increase in open interest in conjunction with declining prices. Immediate support is identified at Rs 1,153.2, with potential further decline towards Rs 1,146.9. Resistance is established at Rs 1,166.8, and a breach of this level may propel prices towards Rs 1,174.1.