Copper prices declined by 0.34%, settling at ₹864.9, as concerns persisted over potential U.S. tariffs on the metal following President Donald Trump’s 25% tariffs on steel and aluminum. If copper is targeted, it could raise costs for U.S. buyers, further disrupting global trade. Despite this, strong U.S. manufacturing activity and expectations of additional Chinese economic stimulus provided some support to the market. The Shanghai Futures Exchange (SHFE) reported a 24.6% increase in copper inventories, signaling improved supply. However, tightening supply on the London Metal Exchange (LME) due to U.S. tariff fears led to a sharp increase in the cash-to-three-month copper premium, which surged to $71 per metric ton, the highest since October 2022.
The International Copper Study Group (ICSG) reported a refined copper market deficit of 131,000 metric tons in November, widening from 30,000 metric tons in October. While the first 11 months of the year saw a 168,000 metric ton surplus, it marked a shift from the 89,000 metric ton deficit recorded in the previous year. November’s refined copper output stood at 2.34 million metric tons, while consumption reached 2.47 million metric tons. Meanwhile, China’s unwrought copper and copper product imports jumped 17.8% year-on-year in December to 559,000 metric tons, reflecting strong demand.
From a technical perspective, copper faced long liquidation, with open interest dropping by 12.98% to 5,315 lots. Key support is at ₹858.4, with a further downside to ₹851.7, while resistance is at ₹876.2, and a breakout above could push prices toward ₹887.3.