Copper Futures Test ₹1,365 Support Amid Rising Inventories

Copper futures on the MCX are testing their technical support level at ₹1,365 per kg. This price point has become crucial as it aligns with the contract's 21-day moving average, a key indicator of short-term price strength.

Historically, ₹1,365 has acted as a floor for copper prices, where declines might slow down or reverse. However, the current market environment is different from recent months, when tight supply conditions drove prices up.

The change in global inventory levels is now weighing on copper prices. Recent data from the London Metal Exchange (LME) showed a substantial daily increase in stockpiles, marking the largest build-up since April. This rise suggests that the global supply squeeze, which previously boosted prices, is easing.

Physical demand remains a challenge, with reports indicating muted domestic demand in India and soft buying interest globally. The broader metals complex is also feeling the impact of higher global bond yields, reducing the appeal of commodity investments.