Copper fell 1.24% to Rs 1,372.4 as industrial metals were impacted by a worldwide bond selloff, a stronger U.S. currency, and rising tensions in the Middle East. Hawkish comments from U.S. Federal Reserve Chairman Kevin Warsh at the Jackson Hole symposium intensified pressure, as he suggested that the Fed might need to increase interest rates if inflation persists above target. This has raised concerns regarding borrowing costs, economic growth, and demand for metals. Supply-side developments offered a degree of support, as total copper stocks in SHFE-monitored warehouses experienced a decline exceeding 19% last week, with on-warrant stocks recorded at 31,462 tonnes.

Chilean copper production experienced a decline of 9.4% year-on-year in July, totalling 403,424 tonnes, down from 445,322 tonnes. This decrease can be attributed primarily to significant weather-related disruptions in the northern mining regions, along with maintenance activities at key operations. Speculators decreased their net long positions in COMEX copper by 2,780 contracts, bringing the total to 76,446 contracts, which suggests a slight easing in bullish sentiment. The global refined copper market transitioned into a 60,000-tonne deficit in June, shifting from a 15,000-tonne surplus in May, as reported by the International Copper Study Group. Nevertheless, the market maintained a 131,000-tonne surplus during the first half of the year. In June, refined copper production was recorded at 2.37 million tonnes, whereas consumption amounted to 2.43 million tonnes.

China’s imports of unwrought copper and copper products experienced a year-on-year decline of 11.5%, totalling 425,000 tonnes in July. For the period from January to July, imports decreased by 6.2%, amounting to 2.92 million tonnes. Copper ore and concentrate imports experienced a decline, whereas Chinese refined copper production saw a year-on-year increase of 1.3%, reaching 1.29 million tonnes in July. Technically, the market is experiencing long liquidation, as evidenced by a 4.26% decline in open interest to 10,979 contracts, accompanied by a price decrease of Rs 17.3. Copper is currently finding support at Rs 1,362.4, and a breach of this level may lead to exposure at Rs 1,352.5. On the upside, resistance is positioned at Rs 1,389.1, and a sustained movement above this threshold could propel prices toward Rs 1,405.9.