Copper prices inched up by 0.02% to settle at ₹827 as market sentiment remained cautious due to geopolitical and economic concerns. U.S. President Donald Trump’s threat to impose tariffs on Colombia weighed on risk appetite, alongside weaker-than-expected economic data from China, a major copper consumer. Manufacturing activity in China unexpectedly contracted, and the services sector showed a sharp slowdown, raising concerns over demand. Additionally, uncertainty ahead of China’s Lunar New Year holiday kept the market subdued. Meanwhile, Freeport-McMoRan (NYSE:FCX) reported lower-than-expected fourth-quarter output and warned of a significant drop in first-quarter production, adding supply-side concerns.
Chile revised its long-term copper production outlook, forecasting 5.54 million tons by 2034, down from the earlier 6.34 million tons. However, China's imports of unwrought copper surged 17.8% in December to a 13-month high of 559,000 metric tons, signaling increased refinery demand. The global refined copper market showed a deficit of 131,000 metric tons in November, widening from 30,000 metric tons in October, according to the International Copper Study Group (ICSG). Yet, for the first 11 months of 2023, the market remained in surplus by 168,000 metric tons, compared to a 89,000 metric tons deficit a year earlier.
Copper is experiencing fresh buying momentum, with open interest rising 11.83% to 6,464 contracts. The metal has immediate support at ₹824.6, with further downside potential to ₹822.3. Resistance is at ₹829.1, and a breakout above this level could push prices towards ₹831.3.