Copper Slides on Demand Uncertainties Despite Long Term Green Energy Support

Demand Side Pressures

Copper futures have come under pressure today, sliding over 2% as fresh data from the manufacturing sector raised concerns about immediate demand. Slowing factory output in key regions has dampened the appetite for refined metal, leading traders to reduce their bullish exposure. The market is pausing to reassess the strength of the global industrial recovery.

Supply Chain Constraints

Despite the daily drop, the supply side remains fraught with risks. Disruptions at major mines in South America are still unresolved, and global inventories on exchanges like the LME and Comex are at historically low levels. This tightness limits how far prices can fall, as any sign of a supply shock could quickly reverse the current bearish sentiment.

Green Tech Resilience

The 'electrification' trade remains the dominant long-term driver. Investments in power grids, electric vehicles, and data centers are non-negotiable for future growth, ensuring a steady baseline of consumption. Analysts suggest that the current price dip represents a buying opportunity for strategic investors focused on the multi-year decarbonization supercycle.