Copper could climb towards USD 16,000 per tonne over the next six to 12 months, while aluminium may offer a shorter-term trading opportunity following its recent correction, according to Navneet Damani, senior group vice-president and head of research for commodities and currency.
Speaking on BusinessLine’s Trending Commodity Picks programme, Damani said copper continued to benefit from supply constraints and demand from emerging industries, while aluminium’s price trajectory had been influenced by fluctuations in energy costs and changing supply conditions.
Damani said aluminium had climbed from around USD 3,100 to USD 3,600 per tonne earlier in 2026, supported by increases in electricity, crude oil and coal prices. The metal subsequently corrected towards USD 3,300 per tonne, although Damani suggested that the decline could create scope for a short-term rebound.
Copper, meanwhile, had followed a stronger trajectory, rising from around USD 11,000 per tonne to nearly USD 14,800 per tonne, according to the interview. Damani attributed its performance to a prolonged supply deficit and robust demand, arguing that the market remained more supportive of copper than aluminium.
Data centres require extensive electrical infrastructure, including wiring, cables and cooling systems, while semiconductor manufacturing adds to the need for copper-bearing components. The expansion of EV charging networks could provide another source of demand as charging stations and fast-charging facilities are installed across commercial and public locations.
However, Damani cautioned that stronger structural demand did not necessarily translate into an immediate increase in Indian consumption. He pointed to currency volatility, elevated freight costs and uncertain macroeconomic conditions as factors that could restrain demand over the following quarter.
He also highlighted the importance of domestic manufacturing activity and currency stability in determining the pace of future copper consumption.