Copper prices show a steady recovery trend amid market stabilization

In the global metals market, the supply and demand for precious metals like silver and gold, as well as industrial metals, are gradually stabilizing. Amid these market environment changes, copper prices have significantly corrected from last week’s historic high and are now beginning to show a clear rebound.

Overall Metal Market Showing Signs of Recovery

According to Jin10 reports, copper futures contracts on the London Metal Exchange (LME) recently rose by 2%, recovering to a level of $13,145.50 per ton. This marks a rebound after a correction of about 15% from the historic high recorded last week. Similar recoveries from declines are also observed in other industrial and precious metals traded on the LME, indicating a broad-based stabilization across the market.

Factors Behind Copper Price Rebound and Current Market Structure

Multiple factors are driving the rebound in copper prices. First, there has been a buying back driven by perceived value in the overall metals market, which had been excessively sold off. Second, concerns over supply disruptions are easing somewhat. These factors are contributing to signs of stabilization across industrial metals, including copper.

Market Experts Highlight High Uncertainty

Li Xuezhi, director of the Chaos Trinity Futures Research Institute, offers important insights into the future movement of the copper market. He warns that the momentum for further upward price movement may face increased uncertainty going forward, and notes that market expectations for U.S. monetary easing policies are becoming less predictable.

A particularly notable point is the narrowing of the price gap between copper on the New York Mercantile Exchange (NYMEX) and the LME. This change indicates reduced downward pressure on LME prices and suggests that the short-term upward trend may be weakening somewhat.

Long-term Support Factors for Copper Prices Likely to Persist

Li Xuezhi also provides a key supplementary view: due to the ongoing structural disruptions in copper mine supplies worldwide, copper prices are expected to remain relatively high over the long term. The coexistence of short-term volatility and long-term support appears to characterize the future of the copper market.

Currently, copper prices are expected to continue a resilient trend amid short-term corrections, supported by structural issues in global metal supply and demand. Market participants will likely need to adopt a layered approach to price fluctuations in the coming period.