Copper prices slipped by 0.1% to ₹828, pressured by concerns over U.S. tariff policies and weak Chinese manufacturing data. Former U.S. President Donald Trump reaffirmed plans for a 25% tariff on Mexico and Canada, with a 10% tariff on China still under consideration. Additionally, potential tariffs on imported steel, aluminum, and copper further weighed on sentiment. In China, the world’s largest copper consumer, manufacturing activity unexpectedly contracted in January, raising concerns about demand. However, China's unwrought copper imports surged 17.8% year-on-year in December, reaching a 13-month high of 559,000 metric tons, indicating refiners were refilling inventories amid higher orders.
On the supply side, Freeport-McMoRan (NYSE:FCX) reported that it missed its Q4 production targets and expects a significant decline in Q1 output. Meanwhile, Chile revised its long-term copper production forecast to 5.54 million tons by 2034, down from an earlier projection of 6.34 million tons. The global refined copper market showed a 131,000 metric ton deficit in November, widening from a 30,000 metric ton deficit in October, according to the International Copper Study Group (ICSG). However, for the first 11 months of 2023, the market remained in a 168,000 metric ton surplus, compared to a 89,000 metric ton deficit a year earlier.
Technically, copper is under long liquidation, with open interest dropping by 0.7% to 6,206 contracts. Support is at ₹826.5, with a potential decline to ₹825. On the upside, resistance is at ₹830.2, and a breakout could push prices toward ₹832.4.