Copper price volatility shakes LME and Comex markets

Copper price volatility hits global exchanges

Copper price volatility surged across global exchanges during late January trading. Prices on the London Metal Exchange and Comex briefly climbed above $6.50 per pound. However, the rally faded quickly as traders locked profits. On January 29, LME copper touched $14,500 per metric ton. Prices later fell near $13,400 per metric ton the same day. As a result, copper remained near the upper historical trading range.

Meanwhile, analysts linked recent moves to late-2025 momentum. LME three-month copper gained 21 percent in the fourth quarter. That marked its strongest quarterly rise since 2020. Natalie Scott-Gray of StoneX highlighted that performance in a January analysis. She noted that copper price volatility accelerated beyond traditional supply and demand signals.

Speculation drives copper price volatility in 2026

Copper price volatility intensified as speculative activity increased entering 2026. Scott-Gray argued that fundamentals change over months, not days. Therefore, rapid price swings lacked fundamental justification. She identified speculative positioning as the primary catalyst. However, she also stressed that fundamentals still shape institutional strategies.

Exchange disruptions add to market uncertainty

Operational issues added further tension to copper price volatility. Bloomberg reported delayed LME trading on January 30 due to technical problems. AAStocks.com cited an exchange notice referencing an electronic platform suspension. Consequently, traders recalled the LME nickel crisis of 2022. Still, the exchange offered no link between volatility and the outage.

In contrast, trader positioning data suggested a nuanced market. StoneX analysis showed speculators shifting toward profit-taking. Commercial participants increased long exposure instead. This behavior signaled hedging activity by producers and consumers. As a result, the market viewed positioning as structurally bullish.

Additionally, macroeconomic forces influenced copper price volatility. A weakening U.S. dollar supported higher metal prices. Scott-Gray expects currency moves to offset softer global demand. Therefore, copper may trade within a higher long-term range.

SuperMetalPrice Commentary:

Copper price volatility reflects a market balancing speculation, hedging, and currency shifts. Commercial buying suggests confidence in sustained price strength. However, sharp swings raise risk for downstream consumers. SuperMetalPrice expects elevated volatility through 2026 as funds test higher price thresholds.