New Delhi: Copper futures fell 0.33% to ₹804.65 per kilogram on the Multi Commodity Exchange (MCX) on Tuesday as muted demand in the domestic market prompted speculators to cut positions. The December contract recorded a decline of ₹2.65 in a turnover of 8,369 lots. Analysts cite subdued industrial demand as the primary factor for the drop.
Globally, copper markets are navigating a complex landscape. Recent reports indicate a softening of demand in Western markets, but China’s continued appetite for the metal, particularly in the green energy and EV sectors, remains a critical driver. In 2024, China’s copper demand is expected to grow by 4.3%, bolstering the global consumption outlook.
However, this demand optimism is tempered by an anticipated 4.6% increase in global refined copper production, driven by capacity expansions in countries like China, India, and Indonesia. This production growth could lead to a surplus, putting downward pressure on prices in the medium term.
Also Read: Silver Futures Climb Amid Robust Global Demand
The London Metal Exchange (LME) has also seen copper prices rally in recent months, touching $9,739 per metric ton. However, analysts warn this surge may be “getting ahead of itself” as physical demand in major markets like China remains inconsistent.
In the short term, domestic traders are closely monitoring international trends, including the impact of a weaker U.S. dollar, which has made dollar-denominated commodities more attractive globally. Meanwhile, domestic industrial activity must recover significantly for local prices to stabilize.
Web Team, C6N
(Input From Sources)
 on Tuesday.){kind=link}