Commodity Market Update: Copper Futures Hit Record High While Crude Oil Prices Climb on October 9

Copper futures surged to a record high, reaching ₹1,015.05 per kilogram on the Multi-Commodity Exchange (MCX), driven by supply constraints stemming from mine outages. November contracts also rose significantly, hitting ₹1,021.20 per kilogram. Concurrently, aluminium and zinc prices increased, reflecting a broader bullish sentiment in the commodities market. Crude oil futures gained ₹23, up to ₹5,528 per barrel, supported by strong spot demand as traders increased their positions.

The driving force behind these price movements can be attributed to significant supply disruptions. Freeport-McMoRan’s force majeure status at its Indonesian copper mine has tightened global supply, with the Grasberg mine halting operations following a tragic mudslide. This event alone accounts for about 3% of annual global copper supply. Additionally, the firm demand for crude oil from various industries and the anticipation of further tightening in aluminium supply have also contributed to price increases across these commodities.

Short-term outlook suggests sustained upward momentum for copper, aluminium, and zinc futures as supply issues persist and demand from construction and manufacturing industries remains strong. Traders and investors may consider this an opportune moment to capitalize on rising prices; however, geopolitical factors and the potential for further disruptions in supply chains present risks that could alter market dynamics rapidly. For crude oil, while spot demand continues to underpin prices, the recent fluctuations in global benchmarks indicate that caution is warranted due to potential volatility.

Source: Market Source

(Expert Note: This report was independently prepared by the Wealthova Commodities team.)