Copper Firms Up as Supply Disruptions Persist

Copper fell to around $5.77 per pound on Friday, hitting its lowest level in nearly six weeks, and on track for its worst week since late November, pressured by slowing demand from Chinese buyers and rising inventories. Reports showed that key consumer China had reduced purchases by fabricators and manufacturers as firms gradually pulled back ahead of the Chinese holidays. Stockpiles in LME warehouses across Asia are also climbing, further signaling softer demand. Analysts say the trend could accelerate as traders divert shipments from Africa to China to take advantage of temporary price gaps between Shanghai and London. Market sentiment was further weighed down after the China Nonferrous Metals Industry Association projected that refined copper output will rise about 5% in 2026, half the growth recorded in 2025.

Copper held below $5.85 per pound on Thursday after losing nearly 4% in the previous session, weighed down rising supplies in top consumer China. An industry group has forecasted that the country’s refined copper output will likely rise by about 5% this year following a 10% increase last year. Rising stockpiles in major trading hubs, particularly LME warehouses in Asia, also weighed on prices, signaling that supplies initially destined for the US may have been redirected elsewhere. On the demand side, purchases from Chinese fabricators and manufacturers slowed for a second consecutive day on Wednesday as businesses prepare for the Lunar New Year holidays. The dip-buying earlier this week also faded as precious metals, especially gold and silver, came under renewed selling pressure.

Copper fell about 1% to $6 per pound on Wednesday, trimming gains from the previous session amid rising inventories at major trading hubs in Shanghai, London, and New York. The red metal decoupled from gold and silver, which climbed for a second day on safe-haven demand, as investors assessed soft physical demand and ample supply for copper. On Tuesday, copper had surged nearly 5% in its best one-day gain since November 2022, driven by a broad rebound in metals after a historic drop. Chinese manufacturers also bought to replenish inventories at lower prices, while a state-backed industry group urged authorities to increase strategic reserves of the metal. In corporate developments, Glencore agreed to sell 40% of its stakes in two African copper operations to a US government-backed group, as Washington seeks greater control over critical minerals.