Copper prices concluded the trading session with a decline of 1.3%, settling at Rs 1,360.45. This downturn was influenced by prevailing uncertainty regarding potential U.S. tariffs on refined copper imports and the consequent effects on inventory flows. The White House remains undecided on tariffs, as officials evaluate the implications of increased manufacturing costs in relation to initiatives aimed at bolstering domestic supply. Broader sentiment also weakened as increasing oil prices heightened inflation concerns in anticipation of the Federal Reserve and Bank of Japan policy meetings.

COMEX warehouse stocks decreased by 0.02% to 767,504 short tonnes, equivalent to 696,268 metric tonnes. This represents the first decline since mid-June, following an increase in U.S. inventories driven by tariff-related inflows. China’s imports of unwrought copper and copper products decreased to 382,000 tonnes in August, down from 425,000 tonnes in July. For the period from January to August, imports experienced a year-on-year decline of 6.7%, totalling 3.30 million tonnes. Copper concentrate imports decreased to 19.49 million tonnes in the first eight months, down from 20.06 million tonnes during the same period last year.

Chilean copper production experienced a decline of 9.4% year-on-year in July, totalling 403,424 tonnes, as severe storms significantly disrupted mining operations. Codelco output declined by 5% to 112,800 tonnes, while Escondida production experienced a decrease of 22.1% to 89,400 tonnes; in contrast, Collahuasi output increased by 12.3% to 38,400 tonnes. The International Copper Study Group reported a refined copper deficit of 60,000 tonnes in June, contrasting with a surplus of 15,000 tonnes in May. Nevertheless, the market for the first half of the year continued to exhibit a surplus of 131,000 tonnes.

Technically, copper is experiencing long liquidation, as evidenced by a 0.07% decline in open interest to 9,771, alongside a price drop of Rs 17.9, suggesting a reduction in existing long positions. Copper is presently encountering support around Rs 1,352.8, and a persistent breach beneath this threshold may lead to a further decline toward Rs 1,345.1. On the upside, resistance is positioned around Rs 1,369.1, and a decisive move above this threshold could bolster the recovery toward Rs 1,377.7.