LME copper for three-month delivery settled at $13,182 per metric ton on June 25, down 1.1% from the prior session and marking the fifth consecutive daily decline. The red metal has shed 4.0% this week as a strengthening US dollar and renewed demand concerns weighed on the entire base metals complex.
COMEX copper futures fell more sharply, losing 2.7% to $5.98 per pound -- the contract's lowest settlement since early May. The divergence with SHFE copper, which edged up 0.9% to ¥104,620/mt, suggests Asian physical demand is holding up better than Western paper markets are pricing.
Copper is now trading 6.5% below its 2026 high of $14,097 set in April. The 30-day range of $13,182-13,966 shows the metal has been steadily grinding lower since mid-May. LME-registered warehouse inventories remain below 150,000 tonnes, providing some structural support against a deeper selloff.
Analysts point to a combination of factors: a stronger dollar index above 105, softer-than-expected European manufacturing PMIs, and uncertainty around US trade policy. The copper market's supply deficit narrative -- estimated at 150,000-200,000 tonnes for 2026 by the ICSG -- remains intact, but macro headwinds are driving price action in the near term.
The current dip below $13,200 creates a tactical buying window for procurement teams with Q3 coverage gaps. The structural deficit hasn’t disappeared — macro selling is temporary. Consider layering in fixed-price contracts at these levels while maintaining 30–40% floating exposure in case the selloff extends to the $12,500–12,800 range.