FX.co ★ Copper Slips as China Demand Softens

Copper futures slipped to about $5.90 per pound on Tuesday, halting a two-day rebound as signs of weakening demand emerged in top consumer China ahead of the Lunar New Year holidays. Industrial activity in China cooled as manufacturers temporarily shut down operations, and broader economic momentum also eased.

On the supply side, major mines continued to grapple with power outages, leading producers to issue cautious output guidance. The China Nonferrous Metals Industry Association projects that refined copper production will increase by around 5% in 2026, roughly half the pace of growth expected in 2025.

Even so, prices remain underpinned by robust global demand, supported by the ongoing energy transition and the continued build-out of AI-intensive data centers. A weaker US dollar—pressured by concerns over softening foreign appetite for dollar-denominated assets—has provided additional price support.