Copper prices concluded the trading session with a 1.32% increase, reaching Rs 1,365. This rise was underpinned by a reduction in global inventories and a favourable outlook for near-term supply fundamentals, even as global demand indicators presented a mixed picture. Market sentiment remained positive as declining stocks in warehouses highlighted tightening availability outside the United States. LME copper inventories decreased to 238,350 tonnes, down from approximately 400,000 tonnes in April, while SHFE stocks experienced a significant decline to about 69,300 tonnes, a reduction from over 430,000 tonnes in March.

The cash LME copper contract traded at a $40 per tonne premium over the three-month contract, marking the highest level in seven months, indicative of tight nearby supply conditions. Meanwhile, oil prices exhibited stability as contradictory statements from the United States and Iran sustained a heightened level of geopolitical uncertainty. Fundamental data indicated a varied perspective. COMEX copper inventories have experienced an upward trend, now totalling 717,314 short tonnes. Concurrently, China’s refined copper imports surged to a nine-month peak of 281,307 tonnes in June, bolstered by robust domestic demand and a decrease in local supply. In the realm of production, Glencore achieved a 15% increase in first-half copper output, reaching 397,000 tonnes.

Concurrently, First Quantum Minerals noted a 5% year-on-year rise in production from Zambia, totalling 184,929 tonnes. However, China’s manufacturing activity decelerated to a four-month low in July, heightening apprehensions regarding industrial demand, while the country’s Politburo opted not to declare widespread economic stimulus. The International Copper Study Group reported an 18,000-tonne global refined copper surplus in May, contrasting with a 145,000-tonne deficit in April, which suggests a more favourable supply balance.

From a technical perspective, copper remained under fresh buying interest, with open interest increasing 2.04%, reflecting new long positions. Immediate support is positioned at Rs 1,353.3, with subsequent support at Rs 1,341.5, whereas resistance is identified at Rs 1,373.3. A sustained breakout above this level could extend gains towards Rs 1,381.5, suggesting that the near-term technical bias remains constructive.