PSU stock in focus after receiving ₹46 Cr order for infra project from Karnataka Govt
Kedia Advisory - Copper prices gained 0.4% to settle at ₹874.85, supported by a weaker dollar that made the metal more attractive for holders of other currencies. However, broader market sentiment remained cautious amid lingering concerns over global demand and unresolved trade tensions. Optimism from earlier U.S.-China trade talk progress faded despite U.S. President Donald Trump’s statement that a deal with Beijing is “done.” Trump’s willingness to extend the July 8 deadline for trade negotiations was overshadowed by threats of unilateral tariffs, contributing to market uncertainty.
On the domestic front in China, smelters are increasingly turning to exports due to weak local consumption, reflecting soft industrial activity. China’s imports of unwrought copper and products declined 2.5% month-on-month in May to 427,000 tonnes and fell 16.9% on a yearly basis, underscoring weak downstream demand. From a supply perspective, while LME copper inventories are trending lower—especially with stockpiles moving toward the U.S. in anticipation of tariffs—Ivanhoe Mines resumed operations at its Kakula mine in the DRC but revised down its annual production guidance, potentially tightening global supply. The International Copper Study Group (ICSG) reported a shrinking surplus in March at 17,000 metric tonnes versus 180,000 tonnes in February, suggesting improving market balance.
Copper is witnessing short covering, evidenced by an 11.29% drop in open interest. Immediate support is at ₹871.5, and a break below could drag prices to ₹867.9. On the upside, resistance lies at ₹877.7, and a move above this could see prices testing ₹880.3.