Copper Rebounds Sharply After Selloff as Supply Fears Mount
Copper prices surged 2% on the London Metal Exchange to $11,656.50 per ton, recovering from a 3% plunge triggered by AI-related tech stock selloffs in New York. The rebound follows copper's brief touch of record highs NEAR $12,000 before the correction.
Industrial metals showed broad strength, with zinc gaining 1.1% and aluminum up 0.4%. The rally comes amid growing concerns about mine supply disruptions and strategic stockpiling by US buyers anticipating potential trade policy shifts.
Citi analysts project copper could reach $13,000/ton by early 2026, with a bull case of $15,000 by Q2 2025. 'We expect the U.S. to hoard global copper inventory,' the bank noted, highlighting structural deficits from green energy investments and power grid expansions.
Avatar Commodities' Andrew Glass describes the market dynamics as creating 'stratospheric new highs,' fueled by American stockpiling that's draining global supplies. The metal has gained over 30% year-to-date as physical shortages emerge.
