Copper prices concluded the trading session with a 0.44% increase, reaching Rs 1,315.3. This uptick was bolstered by a decline in energy costs and a favourable outlook for global manufacturing demand. The decline in crude oil prices followed encouraging developments in U.S.-Iran negotiations, with both sides signalling progress toward restoring trade and energy flows through the Strait of Hormuz. Reduced energy expenses are anticipated to enhance profit margins for manufacturers and bolster industrial operations, which bodes well for copper demand. Furthermore, enhanced financing conditions have bolstered expectations for sustained investment in data centers, which represent a swiftly expanding source of copper consumption.

According to BHP, a single data center can require between 5,000 and 50,000 tonnes of copper, underscoring the metal’s critical role in the growth of digital infrastructure. Market gains were somewhat limited by the enhancement of supply prospects. Rio Tinto has recommenced exports of copper concentrate from its Oyu Tolgoi mine in Mongolia, with anticipations of heightened sulphuric acid availability potentially bolstering refining operations. Nonetheless, apprehensions about the sustainability of long-term mine supply persist in influencing price levels. Jefferies anticipates an average annual copper supply shortfall of 491,000 tonnes extending to 2030.

Concurrently, Goldman Sachs and Citi have both adjusted their copper price projections upward, attributing this to a constricted mine supply and heightened import demand. Goldman Sachs anticipates that deficits beyond the U.S. will continue to be substantial until 2027 and has adjusted its end-2026 price forecast to $13,735 per tonne. Inventory data continued to provide support. Copper stocks in SHFE warehouses experienced a notable decline of 23.6% last week, while inventories on the LME also continued their downward trend. The proportion of cancelled warrants has reached 37% of total stocks, suggesting robust withdrawal demand.

China’s copper demand has demonstrated resilience, bolstered by a 37% increase in power grid investment and a rebound in unwrought copper imports. Technically, the market is experiencing short covering, as evidenced by a 17.79% decline in open interest to 10,335 contracts, coinciding with an upward movement in prices. Copper exhibits immediate support at Rs 1,309.3, with subsequent support at Rs 1,303.2. Resistance is identified at Rs 1,321.2, and a consistent movement above this threshold may drive prices toward Rs 1,327.0.