03.02.202603:16:53UTC+00Copper Gains as Metals Selloff Abates

Copper prices surged above $5.85 per pound on Tuesday, bouncing back from a steep two-day decline as market volatility subsided and bargain hunters entered the scene. The resurgence was further bolstered by Chinese manufacturers, who returned to the market to purchase copper at reduced prices in preparation for the Lunar New Year festivities. Long-term projections still favor demand growth, propelled by rising global investment in renewable energy initiatives and AI data centers. At the same time, supply concerns remain due to prolonged underinvestment in new mining developments. Last week's sharp decline saw copper plummet by as much as 15% from its recent peak, driven by speculative activity giving way to profit-taking. This was notably accelerated by Chinese speculators rapidly closing their long positions as sentiment turned. The downward trend was exacerbated following the nomination of Kevin Warsh by US President Donald Trump as the next Federal Reserve chair—a move interpreted by many market participants as indicative of a hawkish stance.