Copper prices witnessed a sharp correction on the Multi Commodity Exchange on Friday, with the continuous copper futures contract falling 2.37% to around Rs 1,378 per kg, extending losses after a strong rally in the previous session. The decline mirrored a broader pullback across global metal markets, driven by profit booking and a rebound in the US dollar.
On the global front, copper futures dropped more than 3% to around $6 per pound, reversing the sharp gains seen earlier as investors moved to lock in profits. Copper, along with gold, silver, and other industrial metals, had surged to record or near-record levels in recent sessions, prompting traders to reduce exposure amid heightened volatility.
The sell-off came as market participants reassessed the fundamentals behind the recent speculative rally. Copper prices had been supported by expectations of structurally higher long-term demand against a backdrop of constrained supply, following decades of underinvestment in new mining capacity. However, after a rapid run-up, short-term positioning appeared stretched, triggering a sharp correction.
Demand-side optimism remains anchored in strong structural themes, including rising investments in data centres, expanding electrification infrastructure, and the growing rollout of electric vehicle charging networks, all of which are copper-intensive. These long-term demand projections had contributed to the recent surge in prices before Friday’s pullback.
Adding to near-term pressure, a modest rebound in the US dollar weighed on commodity prices, making dollar-denominated metals less attractive for non-US buyers. At the same time, recurring tariff-related remarks from US President Donald Trump had earlier amplified buying interest in hard assets, as investors sought protection amid economic uncertainty and concerns over the dollar’s outlook.
Overall, Friday’s decline in copper futures reflects profit booking and dollar strength following an overheated rally, rather than a decisive shift in long-term demand expectations, with volatility across the metals complex remaining elevated.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Commodity market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions.
