Copper prices extended losses to nearly 9% on MCX on Sunday, deepening the sharp selloff seen across metal markets during the special Budget Day trading session. Copper futures slipped to around Rs 1,190 per kg, continuing the steep correction after hitting record highs earlier this week.
The continued fall in copper is largely driven by aggressive profit booking and leveraged position unwinding after a strong multi-month rally. Copper prices had surged sharply on expectations of global growth recovery and easier monetary policy, leaving the market overcrowded and vulnerable to a sudden reversal.
Sentiment weakened further as expectations of aggressive US interest rate cuts faded, pushing the US dollar higher. A stronger dollar typically weighs on industrial metals like copper by making them more expensive for non-US buyers and triggering systematic selling by funds.
The selloff has also been amplified by thin liquidity, stop-loss triggers, and algorithmic selling, which accelerated once prices started slipping. In addition, caution ahead of the China Lunar New Year holiday, when the world’s largest metals consumer shuts markets for a week, has led traders to reduce exposure across base metals.
Copper’s near-9% fall mirrors the broader global metals correction, with gold and silver also witnessing sharp declines. The move reflects a rapid reset after parabolic gains rather than any fresh negative trigger specific to copper.
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