Copper Set for Second Weekly Gain

Copper futures held near $6 per pound on Friday, poised for a second consecutive weekly gain, as investors awaited key demand signals from China’s upcoming parliamentary meeting. The annual “Two Sessions” will run from March 4 to around March 11, during which the government is also set to release its 15th Five-Year Plan, outlining policy priorities for 2026-2030. Chinese buyers have largely stayed on the sidelines since returning from the week-long Lunar New Year holiday, with some importers delaying purchases amid elevated prices. Many domestic fabricators are not expected to fully resume operations until early next month. Copper inventories in exchange-monitored warehouses also rose to record highs in late January, influenced by US trade policy shifts and mine disruptions.

Copper futures retreated to around $5.95 per pound on Thursday, snapping a two-day advance as investors engaged in profit-taking while reassessing the demand outlook in top consumer China. Physical buying in China remained subdued following the Lunar New Year holiday, with some importers holding back purchases due to elevated prices. Many domestic fabricators are also not expected to fully resume operations until early next month. On the supply side, copper inventories in warehouses monitored by the Shanghai Futures Exchange climbed to their highest levels since 2024, while stockpiles in London and New York also increased, adding to near-term pressure on prices. Meanwhile, markets continued to weigh optimism over potentially lower trade barriers after the US Supreme Court struck down Trump’s reciprocal tariffs, with China projected to face lower average levies on its metal-intensive exports.

Copper futures advanced toward $5.95 per pound on Wednesday, rising for the second straight session as Chinese markets resumed trade this week after the long Lunar New Year holiday. Optimism over potentially lower US tariffs supported the rally after the US Supreme Court struck down President Donald Trump’s reciprocal tariffs. Even with Trump threatening to raise global tariffs from 10% to 15% in response to the ruling, China is still expected to face lower average levies on its metal-intensive exports. However, higher physical prices have raised concerns that top consumer China could curb purchases, pushing exchange-tracked inventories to their highest levels since 2024. Stockpiles in both London and New York have also been on the rise.