Key Moments
- Shanghai Futures Exchange’s most-active copper contract increased 1.78% to 101,780 yuan ($14,679.24) a metric ton as of 0308 GMT.
- London Metal Exchange three-month copper added 0.40% to $13,046.50 a ton, holding above the $13,000 level after last week’s sharp pullback.
- Analysts at ANZ Research said the copper market is expected to remain undersupplied by 4–5%, even as inventories rise and remain unevenly distributed.
Dip-Buying Supports Copper After Volatile Week
Copper prices advanced on Monday as traders stepped in to buy after a turbulent prior week and as the US dollar weakened, offering support to dollar-denominated commodities.
The most-active copper contract on the Shanghai Futures Exchange (SHFE) climbed 1.78% to 101,780 yuan ($14,679.24) a metric ton as of 0308 GMT. On the London Metal Exchange (LME), benchmark three-month copper gained 0.40% to $13,046.50 a ton, maintaining levels above the $13,000 threshold.
The move followed a sharp weekly decline, with SHFE copper having dropped 7.70% last week, marking its steepest weekly loss since July 2022. Over the same period, LME three-month copper fell 1.24%.
Weaker Dollar and Broad Metals Recovery
A softer US dollar lent additional support to copper, making it relatively cheaper for investors using other currencies and improving the appeal of greenback-priced commodities.
Monday’s copper advance occurred alongside a wider rebound across the metals complex, with gains led by gold and silver.
Fundamentals Steady Amid Supply Concerns
Analysts characterized copper’s underlying supply-demand balance as unchanged. Unexpected mine disruptions and uneven regional distribution of refined copper inventories linked to the US tariff threat continued to fuel concerns about supply availability.
At the same time, copper’s role in electrification initiatives and the build-out of AI data centers remained a key structural support for demand.
Analysts at ANZ Research noted in a report, “The (copper) market is set to remain undersupplied by 4–5%, keeping prices supported despite the risk of a short-term pullback as inventories rise but remain unevenly distributed,” underscoring expectations for a continued deficit in the market.
Inventory Build and Lunar New Year Demand Risks
Rising inventories stayed at the forefront of market attention, with participants also questioning near-term demand prospects ahead of the upcoming Lunar New Year holiday in China, the largest consumer market for copper. A nine-day break in China is scheduled to start on February 15.
Copper stocks in SHFE warehouses increased to 248,911 tons on Friday, the highest level since March 2025. Inventories on the LME and Comex also continued to edge higher.
Performance Across Base Metals
Other base metals on the SHFE joined copper in posting gains, with tin leading the advance.
| Exchange | Metal | Move |
|---|---|---|
| SHFE | Tin | Up 3.72% |
| SHFE | Aluminium | Up 1.11% |
| SHFE | Zinc | Up 0.67% |
| SHFE | Lead | Up 0.21% |
| SHFE | Nickel | Up 1.46% |
| LME | Tin | Up 1.99% |
| LME | Aluminium | Up 0.15% |
| LME | Zinc | Up 0.60% |
| LME | Nickel | Up 1.08% |
| LME | Lead | Down 0.10% |
On the SHFE, tin delivered the strongest performance with a 3.72% rise. Aluminium advanced 1.11%, zinc added 0.67%, lead edged up 0.21%, and nickel increased 1.46%.
On the LME, tin again led gains, rising 1.99%. Aluminium moved 0.15% higher, zinc climbed 0.60%, and nickel advanced 1.08%. Lead was the sole laggard, slipping 0.10%.
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