MARKET COMMENTARY
In February, 3M LME copper traded within a range of $12,414.5–13,527 per ton, showing a volatile but ultimately positive performance. Prices faced initial pressure from reports that China planned to increase copper stockpiles, rising inventories in LME registered warehouses, and ongoing concerns over short-term demand.
Officials from the state-backed China Nonferrous Metals Industry Association indicated that China would expand its strategic copper reserves and develop a state-managed commercial stockpiling system, reinforcing expectations of softer import demand in the near term. Additionally, position adjustments by Chinese investors ahead of the extended Lunar New Year holiday reduced market liquidity, contributing to downward pressure on prices as industrial activity slowed and trading volumes declined during the long holiday.
Toward the end of the month, market sentiment improved. A U.S. Supreme Court ruling against broad reciprocal tariffs proposed by Donald Trump eased concerns over escalating trade tensions and supported global growth expectations. Meanwhile, the reopening of Chinese markets after the extended holiday boosted risk appetite, as delayed physical demand and renewed investor participation provided additional support to prices.
As a result, copper recovered in the final sessions, closing February at $13,296 per ton, marking a monthly gain of 1.73%. Overall, the market’s direction during the month was influenced by China-related policy signals, inventory dynamics, and shifts in global risk sentiment.
