Copper prices continued to slide from record highs as market participants weighed whether bullish investors from China would re-enter the metal after a volatile stretch that has shaken global metals markets.
Copper prices on the Multi Commodity Exchange (MCX) crashed nearly 5% to ₹1,169 on Monday. From its all-time peak, the prices are down 18%.
Meanwhile, in the international markets, metal fell as much as 4.2% to $12,600 a ton on the London Metal Exchange. Copper had surged to a record above $14,500 last Thursday, only to tumble below $13,000 a ton during intraday trade on Friday.
What’s weighing on copper prices?
Metal prices have seen sharp swings in recent weeks. Prices initially rallied, driven by strong investor interest in China, where funds flowed into commodities amid concerns over the dollar and a move away from currencies and government bonds.
That momentum reversed on Friday, when markets sold off after US President Donald Trump nominated Kevin Warsh — regarded as a staunch inflation hawk — as the new head of the Federal Reserve.
The turbulent trading followed a stellar run for copper, with futures jumping more than 40% in 2025 on the back of supply disruptions at mines, expectations of demand from the energy transition, and potential US import tariffs, a Bloomberg report suggested.
The scale of the latest moves prompted some traders to reduce exposure due to elevated risks and a growing gap between prices and weakening physical demand. Still, in China, discussions around buying on dips continued to dominate chat rooms and social media over the weekend, and analysts have not ruled out another sharp upswing, the report added.
Copper is seen as a compelling investment due to robust demand prospects and constrained supply, although last week’s surge occurred despite a slowdown in China’s manufacturing activity.
“Copper witnessed a sharp pullback on Friday, ending the week at $13,150/tonne on the LME and Rs1,293/kg on the MCX, as a rebound in the U.S. dollar following the Trump administration’s nomination of Kevin Warsh, widely viewed as an inflation hawk, as the next Federal Reserve Chair, accelerated profit-taking across the metals complex, including both precious and base metals,” said Kaynat Chainwala, AVP – Commodity Research, Kotak Securities.
Where are copper prices headed in near term?
Chainwala further added that copper price action now hinges on a revival in physical demand, particularly from China.
“Near-term upside potential stays limited after plunging over 15% from last week’s record highs, as the pre-Chinese Lunar New Year period (leading to February 17) sees typical inventory accumulation and deferred restocking by fabricators,” he added.
According to Anuj Gupta, Director, Ya Wealth Research & Advisory, the trend in copper appears to be bearish in the short-term.
“Copper touched a high of 1,480.30 on January 29, 2026, but has since corrected by about 19% and is currently trading around the 1,198 level. The decline was largely driven by margin hikes imposed by exchanges such as the CME and MCX.
Additionally, US President Donald Trump announced the appointment of a more hawkish individual as the next Federal Reserve Chair, adding further pressure on prices,” Gupta said.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
