Copper prices hit a record high of over $13,000 per ton before dropping to around $12,700 this week due to stockpiling in the U.S. and China. Analysts predict long-term demand growth, particularly in electrification, but foresee near-term oversupply affecting prices.

Speculators have shown record interest in base metals like copper, zinc, and nickel in China’s markets, with retail investors driving the metals frenzy. Analysts caution that while fundamentals matter in metals markets, positioning and momentum can lead to price volatility and corrections.

China’s Lunar New Year led to a temporary closure of markets, impacting demand and pricing influence. Deutsche Bank Research predicts average copper prices of $12,125 per metric ton for 2026, with a peak of $13,000 in the second quarter post-holiday season. However, high stock levels continue to weigh on copper prices.

Goldman Sachs Research anticipates a decline in copper prices post-announcement of U.S. refined copper tariffs, with a potential 15% tariff affecting market direction. Uncertainty around tariff implementation could significantly impact copper prices this year, highlighting the importance of global surplus in the metal.

Saxo Bank notes that copper’s recent correction is driven by long liquidation and rising stockpiles. Despite long-term investment themes like electrification and AI, near-term upside may remain capped. U.S. tariffs and high stock levels at key hubs continue to influence copper prices, creating uncertainty in the market.

Read more at Yahoo Finance: Copper Unlikely to Follow Near-Term Gold Rally