opper Rally Nears Peak as Weakening Fundamentals Raise Correction Risks

Most of the recent rally in copper prices appears to be behind us, leaving the market increasingly exposed to a correction, according to analysts at Goldman Sachs. Prices have surged over the past two months, driven by mine disruptions and heavy U.S. stockpiling, which has tightened supply in other regions.

Goldman expects high prices to hold through the first quarter due to uncertainty surrounding a potential U.S. tariff on refined copper. However, analysts warn that market fundamentals have been deteriorating, with global inventories rising, scrap supply increasing, and demand underperforming expectations.

Reflecting these concerns, copper futures on the London Metal Exchange fell 2% to $13,033 per metric ton.