MCX copper hits record high on Fed rate cut bets; China smelters cut output
This story was originally published at 15:33 IST on 1 December 2025
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--MCX Dec copper contract hits new record high of INR 1,048 per kg
MUMBAI – Futures contracts of copper Monday rose to a record high on the Multi Commodity Exchange of India, on rising expectations of a rate cut by the US Federal Reserve this month. Copper prices also rose after top Chinese smelters agreed to cut in output by over 10% in 2026 to counter severe overcapacity of copper concentrate feedstock globally. The copper concentrate feedstock is the crushed and concentrated ore that is the primary raw material for copper smelters.
At 1512 IST, the most-active December contract of copper was up 0.7% at INR 1,043.4 per kg on the MCX. It had risen to a record high of INR 1,048 per kg earlier in the day. Support for copper prices on the MCX is seen at INR 1,012.6 per kg and resistance is seen at INR 1,055.2 per kg, according to Kedia Advisory.
According to the CME's FedWatch tool, 84.7% of Fed fund futures traders are now pricing in a 25-basis-point rate cut by the US Fed this month, up from 84.4% a week ago. Typically, lower borrowing costs boost construction and manufacturing activities, aiding demand for copper.
Copper prices also rose after Chile's state-run miner Codelco raised prices of copper cathode for Chinese buyers to a $350-per-tonne premium over prices on the London Metal Exchange. This is $89 per tonne higher than the price agreed at last year's negotiations. Sources also noted that offers to US customers jumped up to more than $500 per tonne premium. At 1512 IST the three-month contract of copper on the LME was steady at $11,190.00 per tonne.
Meanwhile, Chile's copper output fell 7% on year in October to 458,405 tonnes, reinforcing expectations of lower global availability. Copper inventories in Chile also signalled tightening conditions which supported prices, according to Kedia Advisory. End
Reported by Reshma Ravi
Edited by Ashish Shirke
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