Copper Prices Pull Back from Record Highs Amid Temporary Profit-Taking
Copper prices have retreated from record highs in recent weeks, but analysts say the decline is more due to profit-taking and position unwinding rather than weakening fundamentals.
The London Metal Exchange (LME) three-month copper price pulled back from its mid-August high of around $14,310 per metric tonne before recovering slightly above $14,000 by August 20.
Tight inventories, mine supply disruptions, and US tariff-related stockpiling continue to support prices, while long-term demand from electrification, EVs, renewable energy, and AI data centres remains strong.
Ruchit Thakur, Market Analyst at VT Markets, says that the copper rally is driven by both tactical and structural elements. While mining outages, limited supply, US tariff stockpiling, and speculative positioning intensified the shift, real long-term demand support is provided by electrification, renewable power, EVs, and particularly AI data centre investment.
The analyst estimates that the first significant support is at $14,000 per metric tonne, followed by the $13,500, $13,700 range. The main resistance range on the upside is $14,500, $14,550.