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Copper price is up compared to the beginning of the year – Commerzbank

Despite the losses of the last few days, the Copper price on the Comex is up a good 25 percent since the beginning of the year, almost on a par with tin. But on the LME, too, Copper is trading around 10 percent higher than at the beginning of the year, Commerzbank's commodity analyst Barbara Lambrecht notes. 

Copper is still bullish despite the recent decline 

"We see the latest price decline being caused, on the one hand, by the general increase in risk aversion in the markets and, on the other, as a ‘healthy’ correction after the almost overheated price rise of the previous weeks. However, there are also some supportive news for the Copper price: the improved sentiment indices in China's industry and construction sector, although it has to be admitted that the escalating tariff dispute could soon put a damper on this again." 

"The disappointing Chilean Copper production, which fell back below 400 thousand tons in February, or 5.5% below the previous year, after reaching a record high of almost 570 thousand tons in December, a good 14% above the previous year; the low or negative treatment charges (TC/RCs) in China. During a conference of Chinese Copper smelters, no official indication was given for the second quarter, but it was said that the supply of concentrate remained very tight." 

"Some smelters had therefore started maintenance work early and new political protests in front of a Copper mine in Peru. The mine affected is the country's seventh largest, Antapaccay. As a reminder, in 2023/2024, the expansion of the Las Bambas Copper mine was subject to significant delays in the approval process due to protests by indigenous groups."

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FXStreet Insights Team

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

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