Copper prices fall after biggest daily gain in over three years

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Yaroslav Dmytrenko

05.02.2026

Copper prices fall after biggest daily gain in over three years — Copper pulls back as investors refocus on China demand outlook

Copper prices fell on Wednesday after posting their biggest one-day gain in more than three years, as investors refocused on demand prospects in China following sharp swings in the key industrial metal.

On February 4, copper ended the session down 1% after surging 4.6% on Tuesday, marking its largest daily rise since November 2022.

So far this year, copper prices are up about 5% and reached a record high above $14,500 per metric ton last week. However, China’s spot copper market has weakened as prices became too expensive for manufacturers. New signs of softer demand emerged on Wednesday, with inventories at London Metal Exchange warehouses in Asia rising sharply and further supply increases expected.

Copper traders redirected additional spot shipments from Africa to the Chinese market in an attempt to capitalize on the world’s largest regional market. Last year, local smelters accounted for 47% of global refined copper output, and the China Nonferrous Metals Industry Association forecasts that refined copper production in the country will grow by around 5% in 2026, following a 10% increase in 2025.

One of the drivers behind this week’s price surge was a call from an industry lobbying group urging the government to boost strategic copper reserves and domestic producers to build commercial inventories.

As a result, daily spot trading volumes of refined copper across China reached 28,900 metric tons on Tuesday, according to consulting firm Mysteel Global. While this was 24% below the three-month peak recorded a day earlier, volumes remain relatively high for the November period.

Bulls remain on solid footing

Copper’s strong long-term outlook is underpinned by constrained supply and rising demand from electric vehicles, renewable energy, and data centers.

That said, after a day of aggressive buying, Chinese manufacturers slightly scaled back purchases, anticipating lower prices. Copper continues to trade in fundamentally bullish territory, while the 14-day RSI points to market balance.

In the coming days, copper prices may trade within a range of $5.7–$6.0 per pound ($12,570–$13,225 per metric ton).

Daily chart of copper futures prices. Source: TradingView.

The nearest resistance is seen around $6.20–$6.50, with support levels at $5.75–$5.10. Increased shipments to China from Africa raise the likelihood of a downside correction, but any pullback would not signal a reversal of the broader trend.

As we wrote, Copper prices slide as volatility rises ahead of Chinese new year

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