Copper prices settled 3.2% lower, and recent swings reflect heightened uncertainty across base and precious metals this year, with investors rapidly unwinding bullish bets after sharp rallies. Although copper remains up roughly 5% so far this year, with prices touching a record above $14,500 a ton last week.
Market pressure has been linked to signs of weakening spot demand in China, the world’s largest consumer, where higher prices have made the metal expensive for fabricators. Inventories in London Metal Exchange warehouses across Asia have also increased, adding to concerns of softening demand. At the same time, supplies are expected to rise as additional spot cargoes from Africa were redirected to China to take advantage of short-lived arbitrage opportunities, Bloomberg reported.
Further weighing on sentiment, the China Nonferrous Metals Industry Association has projected that refined copper output in the country could grow about 5% this year following a 10% surge in 2025. Local smelters — which produced 47% of the world’s refined metal last year — have been resilient despite a relentless expansion of capacity that’s triggered a collapse in processing fees. Prices had spiked on Tuesday after the state-backed industry group called for authorities to boost strategic reserves of the metal and for Chinese manufacturers to also build up commercial stockpiles.
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Daily refined copper spot trading volumes in China stood at 28,900 tons on Tuesday, according to consultancy Mysteel Global. Although this was 24% lower than the three-month peak recorded a day earlier, activity levels remained relatively elevated compared with most sessions since November.
On the corporate front, Glencore Plc has agreed to sell 40% stakes in two African copper operations to a US government-backed consortium, as Washington seeks greater influence over critical mineral supply chains. Orion CMC, a venture led by Orion Resource Partners with backing from the US International Development Finance Corp., has signed a memorandum of understanding to acquire interests in copper-cobalt mines located in the Democratic Republic of Congo.Copper on the London Metal Exchange settled at $13,044.50 a ton, while most other major base metals, barring lead, ended the session in negative territory.
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