Global Metal Market Stabilization Lifts Copper Prices Higher

Following weeks of volatility across commodities, copper prices have staged a notable recovery as the broader metal market stabilization begins to take hold. The rebound reflects improving sentiment across industrial and precious metals, signaling that the aggressive sell-off seen earlier is losing momentum. According to data from Jin10, copper futures on the London Metal Exchange (LME) climbed 2% to reach $13,145.50 per ton, bouncing back from a sharp 15% decline from recent record highs.

Copper Price Recovery Signals Broader Metal Market Strength

The recovery in copper prices appears symptomatic of a stabilizing metal market environment. Beyond copper, other industrial and precious metals tracked on the LME also showed signs of resilience, regaining ground after the initial downturn. This coordinated recovery suggests that market participants are reassessing risk levels across the entire commodities complex. Li Xuezhi, Director of Research at the Chaos Ternary Futures Research Institute, provided insight into current market dynamics, noting that the buying pressure sustaining recent gains may face headwinds from shifting expectations around U.S. monetary policy.

Market Dynamics: Narrowing Price Gaps and Supply Concerns

A key factor influencing short-term sentiment is the convergence between New York and London pricing benchmarks. The narrowing spread between the New York Commodity Exchange and LME quotations has reduced the likelihood of forced liquidations on the LME, thereby easing some upward pressure on prices. This technical adjustment tempers near-term bullish momentum, even as broader market conditions remain supported. Li emphasized that the metal market faces competing forces—while near-term momentum appears uncertain amid changing policy expectations, the structural backdrop remains supportive.

Long-Term Outlook: Supply Constraints Support Metal Market

Despite current uncertainties in pricing momentum, analysts maintain a constructive view on the metal market’s longer-term trajectory. Global mining production disruptions and supply chain challenges are expected to continue underpinning copper and other base metal prices at elevated levels. These structural supply constraints provide a fundamental floor for the metal market, suggesting that any sharp declines may attract fresh buying from market participants concerned about future availability and pricing.