Copper Prices Bounce Back as Metals Market Pressure Relents

Key Moments

Copper (HG=F) climbed as much as 2% to $13,148.50 a ton on the London Metal Exchange after an 11% slide from a record high to Monday’s close.
Chinese investors and industrial users stepped back into the market, buying on weakness and replenishing inventories ahead of the Lunar New Year holiday.
The LME copper market traded in contango, while premiums on Comex over LME contracts faded, signaling sufficient near-term supply and weaker incentives for metal flows to the US.

Metals Selloff Eases, Copper Leads Rebound

Copper (HG=F) advanced after a steep pullback from a record, as pressure across the metals complex – previously driven by declines in silver and gold – began to subside.

On the London Metal Exchange (LME), copper rose as much as 2% to $13,148.50 a ton, partially reversing an 11% drop from last Thursday’s all-time high to Monday’s close. Other base metals on the LME also moved higher.

Dip-Buying Emerges from China

The recovery in copper prices was supported by fresh buying interest out of China, the world’s largest consumer of the metal. Investors there showed a willingness to step back into the market following the correction, while fabricators and manufacturers returned after weeks on the sidelines of a heated market.

These industrial users moved to rebuild inventories ahead of this month’s Lunar New Year holiday, adding to the demand backdrop.

“Fabricators are willing to step in and buy when there is a correction of more than 10%,” said Li Xuezhi, head of research at Chaos Ternary Futures Co. Funds will also come in to buy the dip for copper with strong fundamental support, he added.

Investor Positioning and Macro Backdrop

Investors had been building positions across metals as they reassessed the outlook for the US dollar and shifted away from currencies and sovereign bonds. That repositioning fueled strong commodity price rallies in January.

Copper’s move comes on the back of a gain of more than 40% in 2025, underscoring the intensity of the recent uptrend.

Upside Drivers Cool as Supply Signals Shift

Despite the rebound, support for further near-term price gains has softened, according to Li. He cited uncertainty over the path of US monetary policy and reduced concerns about a potential supply squeeze on the LME.

In the physical and futures market structure, spot copper on the LME traded at a discount to the three-month benchmark contract, creating a contango pattern that typically reflects comfortable near-term availability of metal.

At the same time, the previously large premiums on Comex copper contracts relative to those on the LME have largely vanished. That erosion in price differentials has reduced the incentive to ship metal to the US ahead of anticipated import tariffs, a trade that had previously drawn supplies away from other regions.

Contract / Metal	Exchange	Move	Price / Change	Market Structure / Notes
Copper (benchmark)	LME	Intraday high	Up as much as 2% to $13,148.50/ton	Rebounded after 11% slide from record high
Copper (benchmark)	LME	Last quoted	Up 1.2% to $13,051/ton as of 11:53 a.m. in Shanghai	Spot at discount to 3-month, indicating contango
Copper futures	Shanghai Futures Exchange	Daily move	Up 2.7%	Supported by Chinese dip-buying
Tin	LME	Daily move	Up 3.5%	Participating in broader base metals rebound
Aluminum	LME	Daily move	Up 0.3%	Modest gain alongside copper recovery

Regional Price Differentials Narrow

The narrowing gap between Comex and LME copper prices has altered trade flows. Earlier, significant premiums on Comex contracts had encouraged shipments to the US, depleting inventories in other markets. With those premiums now largely gone, that draw on non-US supplies has eased.

Market Snapshot

As of 11:53 a.m. in Shanghai, LME copper was up 1.2% at $13,051 a ton. On the Shanghai Futures Exchange, copper futures gained 2.7%. Elsewhere on the LME, tin advanced 3.5% and aluminum added 0.3%.