Copper futures fell to around $5.95 per pound on Thursday, ending a two-day rally as investors took profits and reassessed demand prospects in top consumer China. Physical buying in China has stayed muted following the Lunar New Year holiday, with some importers delaying purchases amid elevated prices. Many domestic fabricators are also not expected to return to full capacity until early next month.
On the supply side, copper inventories at warehouses tracked by the Shanghai Futures Exchange have risen to their highest levels of 2024, while stockpiles in London and New York have also increased, adding near-term downward pressure on prices. At the same time, markets continued to factor in optimism over potentially lower trade barriers after the US Supreme Court invalidated Trump’s reciprocal tariffs, a move that is expected to reduce the average levies China faces on its metal‑intensive exports.
