DBT Bureau
Pune, 20 Jan 2026
Copper prices edged higher, settling up 1.01% at 1,302.5, supported by a weaker U.S. dollar amid concerns over the economic fallout from President Donald Trump’s renewed tariff threats against European nations. Market sentiment was also shaped by mixed signals from China, where 2025 GDP growth met the official 5% target, but persistent weakness in the property sector was underscored by further declines in new home prices. Despite these headwinds, expectations of additional fiscal and financial stimulus to boost domestic consumption in China lent support to demand prospects. Supply-side factors remained influential. Copper availability in LME registered warehouses fell sharply by 22% to a six-month low as metal continued to flow into the U.S. ahead of potential tariff decisions, tightening supply elsewhere. This has lifted LME spreads, with the cash premium over three-month copper rising to a one-month high. Mine output disruptions also offered support, with production declines reported at Codelco and BHP’s Escondida mine, although Chile’s overall copper output is expected to increase in 2026. In contrast, Shanghai Futures Exchange inventories rose sharply and have reached an eight-year high for this period, highlighting regional imbalances. Technically, the market is witnessing short covering, reflected in a 2.79% drop in open interest alongside a ₹13 price gain. Copper has support at 1,292.3, with a break lower opening downside toward 1,282.1. Resistance stands at 1,310.5, and a move above could test 1,318.5.
Source: Kedia Stocks & Commodities Research Pvt. Ltd.
(Disclaimer: This information is for educational purposes only. Please consult your financial advisor before taking positions in stocks)
