Copper Prices Cool After Record Rally: Correction or Buying Opportunity?

• Copper prices, which hit record highs last week, have eased, with the London Metal Exchange seeing a 4% drop to nearly $12,600 per tonne.
• The sell-off was triggered by fears of prolonged high interest rates after US President Donald Trump announced Kevin Warsh as the new Federal Reserve chief, known for his tough stance on inflation.
• Despite the recent dip, copper has delivered strong returns over the past year, with 2025 futures still up over 40%, driven by supply disruptions and clean-energy demand.
• Chinese investor interest remains key, with discussions about buying at lower levels, and analysts suggesting a rebound is possible despite short-term volatility.
• Industrial demand remains weak, with manufacturers slowing purchases and Chinese factories preparing for Lunar New Year shutdowns, contrasting with investor-driven trading.