Copper Falls for Second Consecutive Session

Copper futures dropped below $6.4 per pound on Friday, marking a second straight session of losses as elevated prices discouraged buying activity in China. The metal also faced pressure from accelerating US inflation, which reinforced expectations for a Federal Reserve interest rate hike later this year. Despite the recent decline, analysts continue to view Chinese copper demand as broadly resilient this year, with consumption from clean energy and technology-related industries helping offset weakness in the property and construction sectors. Copper also remains supported by a constructive long-term outlook driven by artificial intelligence-related infrastructure expansion, power grid modernization, and the broader global energy transition. On the supply side, China’s export restrictions on sulfuric acid, combined with disruptions to sulfur production in the Middle East, could tighten global supply conditions and provide additional structural support for prices.

Copper futures declined nearly 2% toward $6.5 per pound on Thursday, easing from record highs as traders took profits while reassessing underlying supply and demand conditions. The metal has posted a strong rally this month, supported by a bullish long-term outlook tied to artificial intelligence-driven infrastructure buildouts, grid modernization, and the broader global energy transition. Ongoing strength in AI-related equities has also reinforced expectations for sustained investment in data center expansion, further underpinning copper demand prospects. On the supply side, China’s export restrictions on sulfuric acid and disruptions to sulfur production in the Middle East could tighten global supply conditions and provide a structural tailwind for prices. Meanwhile, markets are closely watching the meeting between US President Donald Trump and Chinese President Xi Jinping, where discussions may include trade relations, rare earths, and artificial intelligence.

Copper futures climbed to around $6.6 per pound on Wednesday, reaching fresh all-time highs on the back of stronger Chinese demand and growing supply concerns. Recent data suggested resilient industrial activity in China despite geopolitical headwinds, while consumption remained robust across power grids, renewable energy, and artificial intelligence-related infrastructure. The ongoing rally in AI equities has also reinforced expectations for continued investment in data centers, further supporting copper demand. On the supply side, disruptions to sulphuric acid availability linked to the US-Iran conflict raised concerns over tighter global supply conditions. Meanwhile, President Donald Trump is scheduled to meet Chinese President Xi Jinping this week, though he noted that trade discussions will take precedence over the Iran situation.