Copper’s Rally is Misaligned with Market Fundamentals, Macquarie Says
This past week saw the price of copper climb to around $13,800 a ton, supported by easing oil prices after renewed hopes of U.S.-Iran negotiations and fresh U.S. tariff proposals targeting downstream copper products. However, Macquarie Strategy believes the recent rally is no longer supported by underlying market fundamentals. In its latest commodities report, the bank argues that investor optimism has outpaced physical market conditions. Rather than reflecting a genuine shortage of copper, the recent price gains have been driven largely by speculative positioning, short covering and trade flows linked to anticipated U.S. trade measures. Macquarie notes that the global copper market remains well supplied. Since 2025 began, visible inventories have increased by over 870,000 tons,…