Copper prices rose 0.48% to ₹839.85, supported by a temporary halt in U.S.-Mexico-Canada tariffs and higher Chinese copper imports. However, renewed U.S.-China trade tensions weighed on market sentiment after China announced new tariffs on U.S. coal, LNG, crude oil, and farm equipment, effective February 10. Despite trade uncertainties, China’s unwrought copper imports surged 17.8% YoY to 559,000 metric tons in December, as refiners replenished inventories amid rising orders. On the supply front, Chile’s copper output jumped 14.3% YoY in December to 566,547 metric tons, while Peru’s Las Bambas mine expects to produce 400,000 metric tons in 2025.
However, Freeport-McMoRan (NYSE:FCX) warned of lower Q1 production, and Chile revised its long-term copper output forecast down to 5.54 million tons by 2034 from an earlier 6.34 million tons estimate. Meanwhile, Antofagasta (LON:ANTO)’s 2024 copper production edged up just 1% to 664,000 metric tons, below expectations. The global refined copper market showed a 131,000 metric ton deficit in November, deepening from 30,000 metric tons in October, according to ICSG. This reflects a supply-demand imbalance, as world refined copper consumption in November (2.47 million metric tons) outpaced production (2.34 million metric tons).
Technically, the market is witnessing fresh buying, with open interest rising 0.32% to 6,278 lots. Support is at ₹836.4, with a break below testing ₹832.8. Resistance is at ₹842.5, and a move above could drive prices towards ₹845.