Copper Prices Dip Slightly as Markets Avoid Risks Ahead of Key US Data

Copper prices have seen a minor decline as investors trend towards risk reduction before the release of important economic data from the US, which is anticipated to provide clearer indicators regarding future interest rate paths, according to a Bloomberg report.

Three-month copper contracts on the London Metal Exchange fell below $11,600 per ton after gaining over 1% in the previous session. Traders are awaiting the US jobs report set to be released later today, with expectations of a relative slowdown in the labor market, which could support bets on a more accommodative monetary policy, despite declines in stocks and high-risk assets ahead of the announcement.

Year-on-year, copper has seen an increase of about one-third since the beginning of the year, achieving a series of record levels and heading towards its strongest annual performance since 2009. This rise is attributed to supply disruptions at some of the largest mines globally, alongside potential US tariff forecasts on refined metal, which have prompted stockpiling within the United States and tightened conditions in other markets.

In this context, Goldman Sachs has raised its copper price forecasts for next year, considering that US import restrictions seem less likely in the first half of the year, opening a window for pre-emptive shipments before any potential restrictions. Analysts at the bank noted that future tariff expectations could keep US prices at a premium over the London Metal Exchange prices and drive increased storage within the United States, raising their estimates for 2026 to $11,400 per ton compared to a previous forecast of $10,650, with a potential widening of the supply deficit outside the US if tariffs are delayed.

According to the latest trades, standard copper has decreased by about 0.8% to $11,568 per ton on the London Metal Exchange. In other base metals, nickel has fallen for the seventh consecutive session, while lead has seen a slight increase, aluminum remained stable, and both zinc and tin have declined.