MCX copper hits all-time high on tight supplies, supportive US econ data
This story was originally published at 10:01 IST on 29 December 2025
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--MCX Jan copper contract hits new record high of INR 1,372.6 per kg
MUMBAI – Copper futures on the Multi Commodity Exchange of India hit a fresh record high on Monday, tracking gains in prices on the London Metal Exchange. Prices of the metal were lifted by tight supplies and supportive US economic data. Hopes of more rate cuts by the US Federal Reserve and a weaker dollar also supported prices. A weak dollar makes dollar-denominated commodities more attractive to holders of other currencies, boosting demand.
At 0958 IST, the January copper contract on MCX was up nearly 6% at INR 1,334.05 per kilogram, after hitting a high of INR 1,372.6 per kg. Support for copper on the MCX is seen at INR 1,360.00 per kg and resistance at INR 1,450.00 per kg, according to analysts.
The US economy expanded at its fastest pace in two years in the third quarter, supported by strong consumer spending, exports, and industrial activity, leading firm support to copper-intensive sectors, Kedia Advisory said in a note.
Market sentiment also improved as investors piled on to copper after a two-day break on the LME due to speculation that huge flows of the metal to the US would leave the rest of the world short on supply next year, Bloomberg reported. This comes amid fears of the US imposing tariffs on copper imports. On the demand side, copper is expected to be a major beneficiary of the world's energy transition, which is also expected to support prices, Nirmal Bang Securities said in a note.
Growing expectations of rate cuts by the US Federal Reserve next year and strong demand for copper in electric vehicles, renewable energy, and artificial intelligence-related data centres are also supporting copper.
"Trade uncertainty and US tariff risks encouraged pre-emptive stockpiling, while a weaker US dollar and expectations of further Federal Reserve rate cuts supported speculative inflows," Kedia Advisory said in a note. End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Reported by Reshma Ravi
Edited by Avishek Dutta
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