Commodity Market Updates, Dec 4: Copper soars to all-time high on supply concerns; Crude oil futures also rise

Crude oil futures

Crude oil prices on Thursday, December 4, advanced by ₹6 to ₹5,362 per barrel in futures trade, tracking firm trends in global markets amid escalating geopolitical concerns and expectations of a fall in US inventories.

On the Multi-Commodity Exchange (MCX), crude oil for January delivery traded higher by ₹6 or 0.11% at ₹5,362 per barrel in 13,300 lots.

Analysts said raising of bets by participants kept crude oil prices higher in futures trade.

Globally, West Texas Intermediate crude was trading 0.56% higher at $59.28 per barrel, while Brent crude rose 0.45% to $62.95 per barrel in New York.

"Global oil prices edged higher on Wednesday, supported by renewed geopolitical concerns. Russia warned it may target ships from nations aiding Ukraine after recent tanker attacks, adding risk to maritime crude flows," a PTI report, quoting Mohammed Imran, Research Analyst, Mirae Asset ShareKhan, said.

He added that tensions in Venezuela further fuelled supply worries after President Donald Trump declared its airspace "closed", amplifying fears of supply disruptions from the world's 12th-largest oil producer.

Additionally, bullish sentiment was supported by the American Petroleum Institute’s (API) forecast of a 2.8-million-barrel decline in US crude inventories, signalling a stronger demand outlook.

An expert told PTI that, “the combination of potential supply risks and declining inventory expectations strengthened buying interest in crude oil futures.”

Copper futures

On the MCX, copper futures for December 31 delivery rose 1% to a record high of ₹1,087.20 per kilogram, driven by supply concerns, including planned production cuts by Chinese smelters, lower output in Chile’s top producers in October and a weakness in dollar.

The surge in price also comes after exchange data showed a spike in copper orders from Taiwan and South Korea, along with the possibility of a supply shortage as traders diverted huge volumes to the US due to fears of possible import tariffs.

Similarly, red metal contracts for the January expiry also advanced to an all-time high of ₹1,095.45 per kilogram.

Globally, LME copper advanced to an all-time high crossing the $11,500 per ton mark.

The international banking firm Goldman Sachs maintained a selective outlook for 2026, with copper as the preferred metal.

Additionally, it said that industrial metals rallied year-to-date, bolstered by expected US Fed rate cuts, dollar depreciation, and improving China growth expectations. Furthermore, base metals received additional boosts from supply disruptions, policy changes, and the Al capex boom.

Aluminium futures

Aluminium prices increased by 45 paise to ₹280.80 per kilogram in the domestic futures trade as speculators built up fresh positions amid a positive trend in the spot market.

On the MCX, aluminium for delivery in January went up by 45 paise or 0.16% to ₹280.80 per kilogram, with a business turnover of 323 lots.

Analysts said fresh positions created by traders amid demand from consuming industries supported aluminium prices in the futures market.

Goldman Sachs said that a strong supply growth, primarily driven by Chinese overseas investments, has contributed to a bearish outlook for aluminum, lithium, and iron ore.

Zinc futures

Zinc prices surged by 90 paise to ₹305.95 per kilogram in futures trade amid a pick-up in spot demand.

On the MCX, zinc contracts for January delivery traded higher by 90 paise or 0.3% to ₹305.95 per kilogram with a business turnover of 677 lots.

Marketmen said the widening of positions by participants, following a pick-up in demand from consuming industries, kept zinc prices higher in the futures trade.