Copper prices pushed downwards by oversupply and demand uncertainty – London Business News | Londonlovesbusiness.com

Copper prices remain under significant pressure despite a strong rebound in the previous session, as oversupply concerns and demand uncertainties continue to affect market sentiment.

According to the International Copper Study Group (ICSG), the copper market maintained a surplus which could continue to weigh on prices.

Additionally, the recent U.S. election outcome, including potential policy rollbacks by former President Donald Trump and threats of tariffs on China, has heightened demand uncertainty from the world’s largest copper consumer.

These factors have weighed on copper spot prices, suggesting a bearish near-term outlook, particularly as weaker prices could strain Chile, the world’s leading copper producer, and its export revenues.

However, Beijing’s recent move to cancel tax rebates on non-ferrous metal exports has alleviated some of the oversupply pressures, contributing to a modest recovery in copper prices.

The global push for net-zero emissions, combined with strong demand from the expanding semiconductor industry driven by the AI boom, remains a critical long-term support for copper consumption. These factors suggest a long-term support for the metal, with potential for price stabilization if global demand strengthens.

For Chile, this could provide an opportunity to stabilize its copper industry. Meanwhile, BHP, the world’s largest mining company, has committed over USD 7 billion to its copper operations in Chile, which could be beneficial to the country’s revenue levels.