New Delhi, (Economy India): Copper futures declined on Tuesday as weak demand from domestic consuming industries put pressure on prices in the futures market. The decline reflects cautious sentiment among traders amid subdued buying activity in the physical market.
On the Multi Commodity Exchange (MCX), the August copper contract dropped Rs 11.40, or 0.85%, to Rs 1,325.20 per kilogram. A total of 857 lots were traded during the session, indicating moderate market participation.
Market analysts said that lower demand from key industrial sectors, including construction, electrical equipment, and manufacturing, contributed to the fall in copper prices. The slowdown in spot market purchases also encouraged traders to reduce fresh positions in the futures market.
Copper is widely regarded as a key industrial metal because of its extensive use in infrastructure, power transmission, electronics, automobiles, and renewable energy projects. As a result, its prices often reflect the overall health of manufacturing and industrial activity.
Traders are also keeping a close watch on global economic developments, industrial demand from major economies, and movements in the US dollar, as these factors can significantly influence copper prices in the coming sessions. Any improvement in manufacturing activity or stronger global demand could provide support to the metal, while continued weak consumption may keep prices under pressure.
For now, market participants remain cautious, with domestic demand expected to play a crucial role in determining the short-term direction of copper futures.
(Economy India)
