Europe Asia News

Copper futures resumed gains on Monday after falling nearly 3% in the previous session under pressure from disappointing economic data out of China, the world’s largest metals consumer.

Industry experts note that the recent rally accelerated on tariff concerns, amid debates over whether rising AI-related demand and the U.S.’s preemptive stockpiling ahead of potential tariffs can sustain the uptrend and push prices higher.

Analysts emphasize that copper is viewed as a “leading indicator of economic health,” and with copper stockpiling continuing in the United States, prices could reach new highs.

November retail sales growth and industrial output came in below expectations due to weak domestic demand, while fixed-asset investment fell more than forecast. New home prices also contracted for the 29th consecutive month, deepening concerns over the property sector.

The rejection by bondholders of China Vanke’s proposal to defer maturing bond payments by one year heightened fears of a potential default, further weighing on market sentiment.

Nevertheless, copper—an important input for construction, energy, and manufacturing—was supported by declining inventories in London and constrained global supply, trading near multi-month highs.