BREAKING: Copper prices have dipped by 0.7% following last week’s record highs, prompting urgent warnings from Goldman Sachs. Analysts at the financial giant have released a critical note assessing the supply-demand dynamics for 2026, indicating that the recent rally in copper prices may not last long.
The analysts attribute last week’s surge to a combination of a weaker dollar, optimistic growth expectations from China, and a tightening physical market. However, they caution that investor sentiment is currently stretched, reaching the 99th percentile with low open interest, which could signal a precarious situation for investors.
Goldman Sachs believes that while there is potential for further investment in copper, any breakout will likely be brief. They anticipate that the physical market will not show significant undersupply anytime soon. The firm predicts that investors may start to exit their copper positions by early 2026.
In a notable counterpoint, Ivanhoe CEO Robert Friedland highlighted that even with the expected fluctuations, global copper demand stands at approximately 28 million tonnes. He emphasized that the US urgently requires substantial investment in its energy grid to meet growing needs.
As the market reacts to these insights, the implications for industries dependent on copper could be significant. Investors and companies alike are urged to monitor these developments closely as they could influence pricing strategies and supply chain decisions in the coming months.
Stay tuned for updates as the situation develops and more data becomes available, impacting both the copper market and broader economic indicators.
