Copper prices increased by 0.31% to close at Rs 1,273, primarily driven by apprehensions regarding potential supply disruptions. Shortages of sulphur—an essential input in metal processing—stemming from tensions in the Middle East, have contributed to the prevailing bullish sentiment. Sentiment showed an uptick amid expectations of renewed discussions between the U.S. and Iran, as Donald Trump suggested that negotiations might soon be back on the table.

On the demand side, China persists in offering support. The significant increase in the Yangshan copper premium, which has risen by 270% since late January, indicates a robust demand for imports. Furthermore, inventories at the Shanghai Futures Exchange have decreased by more than 11%, leading to a constriction in near-term supply. However, global inventories monitored by the London Metal Exchange and Comex have risen above 900,000 tonnes, suggesting a significant supply in the wider market.

Production trends exhibit a mixed pattern. Chile experienced a contraction in output, characterized by reduced production at significant mining sites such as Escondida, although certain operations did report increases. In the interim, anticipations of an expanded global surplus in 2026, coupled with subdued Chinese import figures, are constraining upward momentum.

From a technical standpoint, the market is experiencing short covering, as evidenced by a 3.08% decline in open interest. Copper exhibits immediate support at Rs 1,260.6, with potential further decline toward Rs 1,248.2. On the upside, resistance is observed at Rs 1,288, and a breakout above this threshold could propel prices toward Rs 1,303.