Copper’s Record Highs Back in Focus as Markets Bet on Long-Term Supply Tightness

India’s leading copper producers, including Adani, Vedanta, Hindalco, and Hindustan Copper, are opposing the inclusion of scrap-based copper wire rods in national quality standards. The companies argue that some recycled copper products may not meet the purity requirements needed for transformers, power cables, and other critical electrical infrastructure. The debate comes as India rapidly expands its power grid and clean-energy investments, driving strong copper demand growth. Analysts say the dispute reflects growing efforts to strengthen copper supply-chain quality and security in India.

SMM Morning Meeting Summary: Overnight, LME copper opened at $13,489/mt, initially rising to $13,533.5/mt before the price center gradually shifted lower to $13,386/mt, ultimately closing at $13,427/mt, down 1.2%. Trading volume reached 20,000 lots, and open interest stood at 277,000 lots, a decrease of 6,463 lots from the previous trading day, indicating bulls reducing positions. Overnight, the most-traded SHFE copper 2606 contract opened at 104,130 yuan/mt, initially touching a high of 104,170 yuan/mt before the price center shifted lower to a low of 103,390 yuan/mt, ultimately moving sideways to close at 103,670 yuan/mt, down 0.82%. Trading volume reached 31,000 lots, and open interest stood at 143,000 lots, a decrease of 4,124 lots from the previous trading day, indicating bulls reducing positions.