Copper prices settled 0.84% higher at 1,283.8, supported by fresh supply-side disruptions even as broader geopolitical anxieties eased. The immediate trigger for the move was a near-halt in production at Capstone Copper’s Mantoverde mine in northern Chile, where a prolonged labour strike forced the shutdown of the desalination plant, raising the risk of a complete stoppage in output.
Supply concerns remain elevated across major producing regions. Chilean state miner Codelco reported a 3% year-on-year decline in November output, while BHP’s Escondida mine, the world’s largest copper operation, posted a sharper 12.8% fall over the same period. In Peru, another key supplier, copper production declined 11.2% year-on-year in November, underscoring persistent operational challenges across Latin America.
These supply constraints stand in contrast to mixed inventory trends. Shanghai Futures Exchange inventories rose 5.8% week-on-week, and the global refined copper market continues to show a surplus. However, availability remains tight in key Western markets, with LME-registered warehouse stocks falling 22% to a six-month low, as material continued to move toward the United States.
From a macro and outlook perspective, Goldman Sachs raised its first-half 2026 copper price forecast, citing scarcity premiums and limited inventory coverage outside the U.S. That said, the brokerage does not expect prices above $13,000 per tonne to be sustained over the medium term.
Technical outlook
On the technical front, the market remains supported by short covering, with open interest declining sharply by 24.38%, even as prices gained ₹10.75. Immediate support is seen at 1,272.1, with a break below this level potentially opening the downside toward 1,260.2. On the upside, resistance is placed at 1,293.6, and a sustained move above this level could pave the way for a rally toward 1,303.2.