Copper Climbs as Chinese Demand Sparks Early Recovery

Copper prices edged higher this week, reaching $6.02 per pound, driven by renewed buying activity from Chinese importers returning from the Lunar New Year holidays. The uptick signals early signs of recovery in demand, with premiums at Chinese ports rising to a two-month high, reflecting growing interest from industrial buyers.


Despite this positive momentum, global inventories remain elevated. Stockpiles on the London Metal Exchange and in China continue to track above seasonal norms, keeping the market well supplied. Analysts note that while increased imports from China may help absorb some of the excess, sustained price gains will likely depend on a clearer reduction in inventories over the coming weeks.

Copper’s appeal continues to be supported by its vital role in industry. The metal is essential in construction, electronics, wiring, and renewable energy projects, and ongoing development in countries such as China and India is expected to drive steady demand. However, supply constraints and fluctuating inventory levels make the market volatile, with prices susceptible to both demand surges and stock adjustments.


Speculative activity has reflected cautious optimism. Market participants have slightly reduced net long positions in copper, indicating a balanced approach amid mixed signals from supply and demand. Technical indicators show bullish momentum in the short term, suggesting that buyers are gradually gaining control after earlier weakness.

Overall, the copper market is in a transitional phase. Early demand recovery is evident, but high inventories may temper near-term gains. Investors and industrial buyers alike will be closely watching import flows and stock movements to gauge whether this recent rally will develop into a broader, sustained trend.