Copper Price News: China's Strategic Reserves Plan Ignites Market Rally

Following a sharp sell-off in precious metals, copper markets staged a robust rebound this week, buoyed by renewed demand from Chinese industrial buyers and strategic government support. A major Chinese industry association’s call for expanded national reserves—combined with bargain-hunting from local manufacturers—sent copper prices climbing and reignited investor appetite for the industrial metal amid broader shifts away from traditional currency assets.

Catalyst for Recovery: Chinese Industry Support and Restocking

The China Nonferrous Metals Industry Association delivered a pivotal message during its recent sector review, urging the government to accelerate strategic copper reserves while coordinating with state-owned enterprises to bolster commercial inventories. This recommendation provided timely support as prices had already begun recovering from an 11% decline that struck the market over a single trading week.

Chinese manufacturers and fabricators, the world’s largest copper consumers, seized the opportunity to restock supplies ahead of Lunar New Year celebrations. As prices corrected from recent highs, value-conscious buyers returned to the market in force. “When prices dip more than 10%, fabricators step in to purchase,” explained Li Xuezhi, research director at Chaos Ternary Futures Co., highlighting the predictable buying patterns that underpin copper demand recovery.

Market Response: Trading Data and Price Action Across Exchanges

On the London Metal Exchange, copper advanced 4.6% at one point, reaching $13,478 per ton as the rebound gained traction. The recovery extended beyond copper, with tin and aluminum posting gains alongside the broader base metals complex. Gold and silver also benefited from the renewed market sentiment.

Underlying the price strength is a fundamental shift in investor positioning. Capital has been flowing away from government bonds and currency holdings—particularly as the US dollar weakens—and into commodities across the board. Copper led the charge in 2025, climbing over 40% for the year as of early 2026. The London Metal Exchange currently shows spot copper trading below three-month futures contracts, indicating adequate near-term supply availability, though previous premiums on Comex contracts have narrowed, reducing incentives for shipments to the US market.

What Analysts Say: Reassessing Short-Term Momentum for Copper Prices

Despite the recent rally, market observers urge caution about sustaining current momentum. Li Xuezhi noted that while investment funds continue exploiting price dips due to copper’s robust fundamental demand, headwinds are mounting. Uncertainties surrounding US monetary policy decisions, combined with a reduction in supply squeeze risks on major exchanges, may limit further near-term price appreciation.

The disappearance of previously elevated Comex-to-LME premiums has also discouraged shipments to American markets ahead of potential tariff increases, easing some of the global supply tightness that previously supported prices. These dynamics suggest the copper price rally, while grounded in solid underlying demand, may face resistance in the coming weeks as macro factors gain influence over sentiment-driven moves.

Market data sourced from Bloomberg and London Metal Exchange reports.