FX.co ★ Copper Slips on Weak Fundamentals

Copper futures slipped toward $5.70 per pound on Tuesday, paring gains from the previous session amid expectations that the market could swing from surplus to deficit as supply continues to outpace consumption. Since 2022, total copper supply has grown by more than 2 million tonnes, while demand—now pressured by weakening Chinese consumption—has risen by only about 1 million tonnes. Chinese copper consumption in 2025 was flat, a marked slowdown from the roughly 700,000-tonne annual increase recorded between 2010 and 2020. At the same time, inventories on the world’s three major copper exchanges—London, COMEX, and Shanghai—have been climbing sharply. Investors also kept a close watch on developments in the Middle East, amid efforts to safeguard commercial shipping through the strategically vital Strait of Hormuz.