Copper prices concluded the trading session with a decline of 0.59%, settling at Rs 1,406.75. This downturn was influenced by a robust dollar and profit-taking activities following recent upward movements. Comex copper inventories have begun to show slight daily inflows, while the premium of US copper futures relative to LME prices has risen following a significant decline. Comex warehouses currently contain approximately 69% of the nearly 1 million tonnes of copper monitored across global exchanges, underscoring apprehensions regarding diminished availability beyond the United States. Chilean copper production experienced a significant downturn in July, as Codelco’s output decreased by 5% compared to the previous year, totalling 112,800 tonnes.

Meanwhile, production at BHP-controlled Escondida saw a more pronounced decline of 22.1%, reaching 89,400 tonnes. Collahuasi output increased 12.3% to 38,400 tonnes; however, Chile’s overall copper production declined by 9.4% as a result of severe weather conditions in the north and maintenance activities at major operations. Cochilco anticipates a decline of approximately 2.5% in Chilean copper production in 2026, followed by a recovery in the subsequent year. Peru contributed to supply dynamics, as evidenced by a 3.7% year-on-year increase in copper production for July, reaching 236,515 tonnes. Additionally, production from January to July saw a 2.2% rise, totalling 1.6 million tonnes.

The global refined copper market experienced a deficit of 60,000 tonnes in June, contrasting with a surplus of 15,000 tonnes in May. Nevertheless, the data for the first half of the year indicates a cumulative surplus of 131,000 tonnes. In June, refined copper production reached 2.37 million tonnes, while consumption was recorded at 2.43 million tonnes. 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, down from 20.06 million tonnes. Technically, the market is experiencing long liquidation, evidenced by a decline in open interest of 11.71% to 6,425, alongside a price decrease of Rs 8.4. Copper currently has support at Rs 1,402.3, and a decline below this level may test Rs 1,397.7. Resistance is positioned at Rs 1,413.2, and a sustained movement above this threshold may propel prices toward Rs 1,419.5.