Copper ($US/MT)

Copper declined from a near record overnight, despite a weaker US dollar. Copper’s rally, which pushed prices to a fresh record earlier this month, is now starting to test demand. In China, metals markets have slowed ahead of the Lunar New Year, a period when inventories typically build, and downstream buyers reassess purchasing plans for the year ahead. Analysts warn that many copper users are holding back, waiting for prices to cool. Longer-term contract negotiations between refiners and end-users have also become increasingly drawn out, with some talks dragging on for weeks without resolution, highlighting growing price sensitivity at these elevated levels.

• We can see copper extending its recent gains, but some consolidation feels likely in the short term.