Copper Rebounds as China Industry Group Calls for Stockpiling

Group 1 - Copper prices rebounded by as much as 4.9% to $13,526 a ton on the London Metal Exchange after an 11% decline from a record high [1] - The China Nonferrous Metals Industry Association called for an expansion of strategic reserves and collaboration with state-owned producers to increase commercial stockpiles [1] - Signs of dip-buying from investors in China, the largest consumer of copper, contributed to the price rally as fabricators returned to the market to replenish stocks ahead of the Lunar New Year [2] Group 2 - Fabricators are willing to buy copper when prices correct by more than 10%, indicating strong fundamental support for the metal [3] - Investor interest in metals has surged due to doubts about the US dollar and a shift away from currencies and sovereign bonds, leading to significant price rallies in January [3] - However, drivers for further price increases have weakened due to uncertainty over US monetary policy and reduced risks of a supply squeeze on the LME [4] Group 3 - Spot prices are trading at a discount to the three-month benchmark contract on the LME, indicating ample near-term supplies [5] - Large premiums on Comex contracts over LME contracts have diminished, which may discourage metal flows to the US ahead of potential import tariffs [5]