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Copper Hits Record, Then Recoils as Correction Risks Mount

Speculative buying in China dominated trading, leaving prices vulnerable as a US decision on refined‑copper tariffs looms.

Overview

  • Copper spiked above $14,500 a ton this week before sliding, with prices around $13,800 by Friday after the rapid rally faded.
  • Chinese investor flows drove the surge, while indicators show soft physical demand and ample exchange inventories.
  • Goldman Sachs cautioned that a second‑quarter pullback is likely, citing a potential refined‑copper tariff decision as a catalyst.
  • A 50% US tariff on semi‑finished copper imposed in July 2025 encouraged stockpiling that analysts say has distorted recent demand signals.
  • Longer‑term demand tied to electrification and data‑center build‑outs remains supportive, even as a weaker dollar and speculative activity amplified short‑term volatility.