Copper prices advanced as sentiment in artificial intelligence stocks improved and demand from China strengthened, according to a market report by Kedia Advisory published on Investing.com. The metal settled 0.88% higher at Rs 1,405.35, although a firmer US dollar limited the gains. The report does not specify the exchange or contract month for the rupee-denominated price.
Demand from China was a key support. China's Yangshan copper import premium rose to nearly a 13-year high of $188 per tonne, which the report says highlights strong demand for imported metal. The London Metal Exchange cash contract traded at a $199.50 per tonne premium over the three-month forward contract, indicating near-term supply tightness.
The report also cited China's economy growing 4.5% year-on-year in the third quarter and September industrial production rising 5.5%. Chinese copper imports rose 20.7% month-on-month to 461,000 tonnes in September. On the supply side, disruptions at major mines in Chile and Peru continued to weigh on sentiment.
Chilean state miner Codelco reported an 8.9% annual increase in August production to 101,700 tonnes. Output at Escondida fell 27.6% to 76,100 tonnes, and Collahuasi production declined 25.1% to 26,500 tonnes. Peru's copper output fell 5% year-on-year in August.
Goldman Sachs raised its end-2026 copper price forecast to $14,700 per tonne and its 2027 average forecast to $15,400 per tonne. The bank cited weaker mine supply and tightening markets outside the United States, as reported by Kedia Advisory. The International Copper Study Group (ICSG), however, pointed to a looser refined market.
It reported a refined copper surplus of 132,000 tonnes in August, compared with a deficit of 45,000 tonnes in July. The ICSG projects the global refined copper surplus will widen from 104,000 tonnes in 2026 to 368,000 tonnes in 2027, as production growth is expected to outpace consumption. Refined copper usage is forecast to rise 1.5% in 2026 and 2.5% in 2027, supported by electrification, renewable energy, digitalisation and data centre demand.
From a technical perspective, Kedia Advisory noted fresh buying in the market, with open interest rising 20.84% to 6,749 contracts while prices gained Rs 12.3. Copper has support at Rs 1,395.50 and Rs 1,386.00, with resistance at Rs 1,410.50. The report said a sustained move above Rs 1,410.50 could push prices towards Rs 1,416.00, while a break below Rs 1,395.50 may trigger a decline towards Rs 1,386.00.
Source: Kedia Advisory, via Investing.com. Forecasts and statistics cited are attributed in the original report to Goldman Sachs, the International Copper Study Group, Codelco and other sources as described above.
Source: in.investing.com