February copper contracts slipped 0.9% to hit an intraday low of Rs 1,238.55 per kg, tracking weakness in overseas markets. On the London Metal Exchange (LME), benchmark three-month copper contracts edged down 0.18% to $13,152.50 per tonne.
Despite the US dollar extending its decline for a third straight session—typically supportive for dollar-denominated commodities by improving affordability for non-US buyers—copper prices remained under pressure, reflecting persistent demand concerns.
Rising inventories at exchange-registered warehouses and subdued demand ahead of China’s nine-day Lunar New Year holiday, which begins on February 15 and typically slows economic activity, have weighed on the metal, Reuters reported.
The demand-supply equation remains unchanged, giving a positive outlook for copper, Ajit Mishra, Senior Vice President – Research at Religare Broking, said, “Expecting the demand to remain robust in the wake of the AI boom and requirements from the green energy sectors. He does not rule out intermittent corrections ahead of the key economic releases.”
Copper reached record levels to around $14,000/ton on the LME towards the end of 2025 before mildly pulling back in early 2026, Mishra said.
“The red metal has rebounded sharply off the lows during the previous week and appears to consolidate above the 1,200 (MCX) level.
Technical Outlook
The recent pullback from peak levels clearly suggests profit-taking activity and short-term correction pressure, Mishra said. “Reviewing the price action for the last couple of weeks, the copper derivatives could find ready buyers at the strong support regions every time,” Mishra said. The long-term uptrend remains intact, but MCX February copper may show choppy consolidation or sideways price action rather than a straight rally, considering a temporary drop in volumes towards the weekend, as the Chinese financial market closes on account of the Lunar Year holidays, the Religare analyst opined.
ETMarkets.comCopper trading strategy
The intermittent corrective phases should be capitalised on the buy side as the broader view remains bullish on the back of the structural supply deficits, he suggested.
Strong support points are located at Rs 1,180 – Rs 1,200 for this week, and wait for a pullback for initiating a buy. Subject to stability above the intermediate support of the Rs 1,225-1,230 region, resume long positions placing stop loss below Rs 1,198 and targeting Rs 1,270-1,280.
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(Disclaimer: The recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times.)