Copper prices experienced a modest decline of 0.34%, concluding at Rs 1,265.05, as market participants exercised caution in anticipation of possible U.S.–Iran peace negotiations and critical indications from the Federal Reserve regarding interest rate adjustments. The Yangshan premium, indicative of China’s import demand, held steady at $69 per ton, suggesting persistent support even as it experiences a minor decline from recent peaks.

On the supply side, inventories at Shanghai Futures Exchange warehouses have experienced a significant decline of 9.8% week-on-week and have decreased by nearly 45% since mid-March, indicating a tightening of near-term availability. Globally, production trends exhibited variability—Rio Tinto announced a 9% increase in output, whereas Peru experienced modest growth. Conversely, Chile experienced reductions, as Codelco and BHP’s Escondida mine indicated diminished output, while Collahuasi noted a significant rise.

The global refined copper market continued to exhibit a surplus, though the excess contracted notably to 17,000 tons in January. China’s trade data revealed a degree of softness, as copper imports declined on both a monthly and quarterly basis. Refined copper production in the country increased by 8.7% year-on-year, underscoring consistent domestic output.

From a technical perspective, the market is experiencing long liquidation, as evidenced by a 4.24% decrease in open interest to 7,816. Immediate support stands at Rs 1,259.3, with potential further decline to Rs 1,253.4. Resistance is established at Rs 1,273, and an upward movement beyond this threshold may propel prices toward Rs 1,280.8.