Copper Prices Seen Lower as Tariff Distortions Unwind

TD Securities is forecasting a decline in copper prices as tariff-related market distortions begin to unwind, according to a recent research note. The investment bank believes that the red metal's price strength was partly inflated by inventory build-ups and supply chain disruptions caused by tariffs, which are now reversing.

The analysts argue that while near-term demand remains resilient, the unwinding of pre-emptive buying and restocking could lead to a correction. They point to normalizing trade flows and reduced inventory builds as key signals that the market is entering a new phase.

For investors, this forecast suggests caution on long copper positions, as the unwinding of distortions could lead to downside volatility. Industrial buyers, however, may benefit from lower input costs if the price decline materializes.