Why is copper price surging again and will it stay above $13,000 or fall back?
Copper price surged again as buying interest returned after a sharp correction. Prices moved back above $13,000 as investors reacted to support near $12,500. Improved sentiment helped copper recover intraday losses. However, high inventories and recent volatility keep uncertainty in the market. Price direction now depends on whether demand expectations outweigh inventory pressure.
Why is copper price surging again?
Copper price is surging again mainly due to dip buying after recent declines. Traders viewed lower prices as an entry point. The unwinding of long positions eased pressure. A weaker dollar also supported metals. These factors combined to push copper back above key technical levels during the session.
Copper rebounds above $13,000 after dip buying
Why is copper price surging again and will it stay above $13,000 or fall back? Copper shrugged off an early decline and moved back above $13,000 per metric ton. Three-month copper on the London Metal Exchange rose 0.8% to $13,001 per ton by 1700 GMT. Earlier in the session, prices fell as much as 2.9% to $12,528. Copper later touched a session high of $13,037.50.
Despite the rebound, copper remained lower for the week. Prices were on track to end the week down 1.2%. Copper had already fallen 10.5% from the record high of $14,527.50 reached on January 29. The recent drop created buying interest as traders viewed prices as more acceptable.
Support levels and market positioning
Why is copper price surging again and will it stay above $13,000 or fall back? A merchant bid emerged after the recent dip, according to broker Marex. The broker noted that copper found support near the $12,500 level. This support encouraged investors to return to the market.
Copper also followed gold and silver during a broader correction. Analysts at Sucden Financial said the unwinding of long positions pulled prices closer to fair value. This process reduced earlier excess positioning and contributed to recent price weakness before the rebound.
Inventories weigh but demand outlook remains
Why is copper price surging again and will it stay above $13,000 or fall back? Rising inventories continued to weigh on prices. On the U.S. Comex exchange, copper stocks reached a record 531,999 tons. London Metal Exchange inventories rose to 183,275 tons. This marked the highest level since May 2025. Deliveries increased into South Korea and New Orleans.
Copper stocks on the Shanghai Futures Exchange rose for a ninth straight week. Inventories climbed to 248,911 tons. This build-up reflected seasonal trends ahead of the Lunar New Year.
ING analyst Ewa Manthey said attention would return to tight ore supply and growing demand after the holiday. She said demand from electrification and grid investment remained unchanged. These factors continue to support the longer-term copper outlook.
Other metals show mixed movement
Why is copper price surging again and will it stay above $13,000 or fall back? Aluminium led gains among base metals. Prices jumped 2.2% to $3,091.50 a ton after earlier slipping to $2,990. A weaker dollar index supported metal prices. Marex said buying interest appeared when aluminium traded below $3,000.
Zinc rose 1.5% to $3,350. Nickel edged up 0.1% to $17,100. Tin gained 0.8% to $46,825. Lead added 0.2% to $1,958 after earlier touching a seven-week low of $1,945.
Will copper stay above $13,000 or fall back?
Copper may face resistance above $13,000 as inventory levels remain high across major exchanges. Support is seen near $12,500. Short-term price movement will depend on sentiment and macro signals. Longer-term focus remains on supply limits and demand growth. A break below support could trigger selling, while steady demand could help prices hold current levels.
Analysts insights and market outlook
Analysts say the market will refocus on tight ore supply and demand from electrification after seasonal factors pass. ING noted that these drivers remain unchanged. However, analysts also point to rising stocks on Comex, LME, and Shanghai as a limiting factor for near-term gains.
What should investors do now?
Investors may monitor key support and resistance levels closely. Price swings could remain sharp in the near term. Watching inventory trends, demand signals, and broader market sentiment may help guide decisions. Cautious positioning may be preferred until clearer direction emerges.
FAQs
Why is copper price surging again and will it stay above $13,000 or fall back?
Copper price surged again as investors bought the dip near $12,500. Prices moved above $13,000 due to improved sentiment. High inventories may still limit gains in the near term.
Does rising copper inventory mean prices will fall again?
Rising copper inventories can pressure prices in the short term. However, prices may still hold if demand expectations improve and buying interest emerges near key support levels.