Copper prices have cooled after record highs as traders reassess risks. While volatility continues, analysts say the dip could offer opportunities amid strong long-term outlook
Still In Profit Despite The Dip: Even after the correction, copper has delivered strong returns over the past year, with 2025 futures still up over 40%. Supply disruptions, clean-energy demand and tariff fears fueled the rally. However, some investors stepped back last week, citing high risk and weaker physical demand as manufacturers reduced purchases.China’s Role Remains Key: Chinese investor interest continues to influence prices. Social media and trading forums saw discussions about buying copper at lower levels. Analysts say a rebound is possible, though some funds are cutting positions ahead of the Lunar New Year to reduce risk. Despite short-term volatility, medium- to long-term sentiment in China remains bullish.Industrial Demand Looks Weak: On the industrial side, demand remains soft. Manufacturers have slowed purchases, and several Chinese factories are preparing temporary shutdowns for the Lunar New Year. Recent data also showed an unexpected slowdown in December manufacturing, highlighting the gap between investor-driven trading and real consumption.Copper Outlook: Some analysts see the recent drop as a buying opportunity. Jinhu Futures’ Li Yaoyao believes copper may be entering a long-term supercycle, with Shanghai prices potentially ranging between 100,000 and 150,000 yuan per tonne this year. Despite short-term swings, the long-term outlook continues to attract investors.
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Copper prices, which hit record highs last week, are now easing as volatility shakes global metal markets. Traders are reassessing risks while investors debate whether Chinese buyers will pull back after recent gains and losses. On the London Metal Exchange, copper fell about 4% to nearly $12,600 per tonne. Other metals also slipped — aluminium dropped around 3% and tin over 8%. Just days earlier, copper had touched a record $14,500 before sliding below $13,000.
