Copper Prices Rebound Amid Market Skepticism

Copper prices on the London Metal Exchange rose 0.4% to $12,796 per metric ton as of 1700 GMT on January 21, 2026, recovering from a sharp 1.6% decline the previous day. This rebound comes after copper hit a record high of $13,407 just one week earlier, highlighting ongoing volatility in the market. The current uptick was largely driven by tight inventories outside the US US, though analysts express skepticism about the rally's sustainability due to potential demand destruction from elevated prices and geopolitical uncertainties.

The market's fragility was underscored by a dramatic reversal in cash premiums. On January 20, the cash LME copper contract premium spiked to more than $100 per ton, only to flip into a $23.50 per ton discount the following day, reflecting shifting investor sentiment. Adding to the complexity, the Yangshan copper premium fell to $22 per ton, marking its lowest point in nearly 18 months, signaling a potential decline in Chinese CNcopper appetite. In December, China exported 96,000 tons of refined copper, a figure down by one-third from November but more than five times higher than a year earlier.