February copper contracts fell 0.9% to hit an intraday low of Rs 1,238.55 per kg, reflecting weakness in overseas markets. On the London Metal Exchange (LME), three-month benchmark copper contracts fell 0.18% to $13,152.50 per tonne.Despite the US dollar continuing its decline for a third consecutive year – generally supporting dollar-denominated commodities by improving affordability for non-US buyers – copper prices remained under pressure due to ongoing demand concerns.
Rising inventories in stock exchange-registered warehouses and weak demand ahead of China’s nine-day Lunar New Year holiday, which starts on February 15 and typically slows economic activity, have weighed on the metal, Reuters reported.The equation between supply and demand remains unchanged, which gives a positive outlook for copper. Ajit Mishra, Senior Vice President – Research at Religare Broking, said: “Expecting demand to remain robust in the wake of the AI boom and demands from green energy sectors. He does not rule out periodic corrections ahead of key economic releases.”
Copper reached a record level of around $14,000/ton on the LME in late 2025 before retreating slightly in early 2026, Mishra said.
“The red metal has recovered sharply from the lows over the past week and appears to be consolidating above the 1,200 (MCX) level.
Technical outlook
The recent pullback from peak levels clearly indicates profit-taking and correction pressure in the near term, Mishra said. “Looking at the price action over the past few weeks, the copper derivatives can find buyers every time in the strong support regions,” Mishra said. The long-term uptrend remains intact, but MCX February copper may see a choppy consolidation or sideways price action rather than an outright rally given a temporary drop in volumes towards the weekend as the Chinese financial market closes for the Lunar New Year holidays, the Religare analyst opined.
ETMarkets.comCopper trading strategy
The intermittent correction phases need to be capitalized on the buy side as the broader view remains bullish due to the structural supply shortages, he suggested.
Strong supports are at Rs 1,180 – Rs 1,200 this week, waiting for a pullback to initiate buying. Subject to stability above the intermediate support of the Rs 1,225-1,230 region, you can resume long positions by placing the stop loss below Rs 1,198 and targeting Rs 1,270-1,280.
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(Disclaimer: The recommendations, suggestions, views and opinions expressed by the experts are their own. These do not represent the views of The Economic Times.)
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