Copper rose above $5.85 per pound on Tuesday, rebounding from a sharp two-day selloff as volatility in the metals market eased and dip buyers stepped in. Chinese manufacturers also returned to the market, purchasing copper at lower levels to restock ahead of the Lunar New Year holiday. Longer-term support remains in place due to expectations of higher demand from global renewable energy projects and AI data centers. Additionally, supply risks persist following decades of underinvestment in new mining projects. Copper plunged as much as 15% from an all-time high reached last week as the speculative rally gave way to profit-taking, with Chinese speculators quickly unwinding long bets as sentiment shifted. The downturn intensified after US President Donald Trump nominated Kevin Warsh to become the next Fed chair, widely seen by markets as a hawkish candidate.
