09.02.202602:59:23UTC+00Copper Steadies After Volatile Week

Copper prices hovered around $5.90 per pound on Monday, following a week marked by significant volatility. Investors are currently weighing the ongoing supply constraints against indications of declining demand from China, the largest global consumer. Industrial activity in China has decelerated as manufacturers wind down operations ahead of the extended Lunar New Year celebrations. Despite this, strong global demand continues, driven by the energy transition and the expansion of data centers, which supports market stability. On the supply front, several major mining operations are grappling with power outages, contributing to cautious production forecasts. The China Nonferrous Metals Industry Association anticipates that refined copper production will increase by around 5% in 2026, a rate that reflects only about half the growth seen in 2025. In a related development, U.S. Treasury Secretary Scott Bessent attributed last week's pronounced fluctuations in the metals market to Chinese traders, characterizing the recent surge as a speculative spike.