Copper Prices Jump 2.2% as Investors Buy the Dip, Tech Stocks Recover

Copper prices bounced back Wednesday, rising 2.2% to $12,893 per metric ton after hitting a week-long low. The recovery was driven by investors buying during the price dip and a rebound in technology stocks.

Copper prices rebounded strongly on Wednesday, recovering from their lowest point in over a week as investors seized the opportunity to purchase at reduced prices and industrial metals followed technology stocks higher.

The primary copper contract on the London Metal Exchange gained 2.2% to reach $12,893 per metric ton by 1700 GMT, after peaking at $12,941 earlier in the session. The metal had dropped 1.8% on Tuesday, falling to its weakest level since February 6.

Chinese traders, who represent the world’s largest metals market, remained mostly sidelined due to Lunar New Year celebrations. Panmure Liberum analyst Tom Price explained that traders “rarely leave significant capital in the market” during the holiday period, noting that increased volatility typically results in dip-buying opportunities. “So I think that will offer a little bit of support,” Price stated.

According to broker Marex, base metals have been following signals from the Nasdaq instead. The Nasdaq Composite gained 1.3% as technology companies recovered ground following a recent artificial intelligence-driven market selloff.

London Metal Exchange copper inventories rose for the twelfth consecutive day, reaching 224,625 tons – the highest level in eleven months. New deliveries arrived at warehouses in New Orleans and Kaohsiung.

American storage facilities now hold nearly 18% of all copper available in LME warehouses, while an additional 538,122 tons remain on the U.S. Comex exchange.

“When inventories and copper prices lift together, something’s not right,” Price observed, noting that American copper usage has decreased over the past twelve months.

The immediate-delivery LME copper contract traded at a $97 per ton discount compared to three-month forward contracts, indicating limited urgent demand for the metal.

Other base metals also rallied broadly. Zinc increased 2.4% to $3,365.50 per ton after reaching a two-week low on Tuesday, while aluminum rose 1.7% to $3,086.50, positioned to end a four-session decline.

Lead advanced 0.9% to $1,963.50, nickel surged 3.1% to $17,375, though tin fell 0.3% to $45,710.