Copper prices concluded the session with a slight decline of 0.01%, settling at Rs 1,311.75, as investors weighed the impact of lacklustre macroeconomic indicators from China against the backdrop of milder inflation figures from the United States. China’s economic growth has decelerated to a three-and-a-half-year low, falling short of market expectations as subdued domestic demand persists, exerting pressure on industrial activity and metals consumption. The disappointing growth outlook exerted pressure on copper prices, even as sentiment regarding the U.S. interest rate outlook improved in light of lower-than-expected inflation figures.

Fundamental indicators exhibited a varied landscape for the copper market. Combined inventories across LME, COMEX, and SHFE reached 1.145 million tonnes at the end of May, marking a 54% increase from the end of 2025 and the highest level since January 2003, indicating a comfortable global supply. China’s refined copper production rose by 2.2% year-on-year to 1.26 million tonnes in May. In contrast, cumulative copper imports from January to May fell by 7%, indicating a decline in domestic demand.

However, supply-side concerns continued to emerge as copper inventories in LME warehouses fell more than 20% since the end of May, with a significant portion of remaining stocks already earmarked for delivery. Chile has also reported significant production declines at major mines, including Codelco, Escondida, and Collahuasi. Meanwhile, the International Copper Study Group reported a global refined copper deficit of 145,000 tonnes in April as consumption exceeded production, although the market remained in surplus during the first four months of the year.

Technically, copper is experiencing long liquidation, evidenced by a 0.96% decrease in open interest alongside a slight decline in price, which suggests the unwinding of existing bullish positions. Immediate support is positioned at Rs 1,305.4, succeeded by Rs 1,298.9, whereas resistance is identified at Rs 1,318.1 and Rs 1,324.3. A decisive move beyond these levels is anticipated to dictate the market’s forthcoming short-term trend.