Copper Suffers Biggest Daily Drop in Three Weeks as Technical Resistance Builds

Copper markets experienced their sharpest decline in three weeks during Tuesday’s trading session, with COMEX futures falling $0.0965 to close at $4.7100 per pound.

The 2.01% drop marked the largest single-day decline since May 7, 2025, according to Trade Service data. The selloff snapped a three-session winning streak that had lifted copper from earlier May lows.

Tuesday’s decline pushed the red metal 9.70% below its 2025 settlement high of $5.216 reached on March 26, though copper maintains an 18.16% year-to-date gain.

Wednesday morning trading showed continued weakness, with CFD prices around $4.73281 reflecting ongoing pressure. The 4-hour chart reveals a series of red candles following Tuesday’s sharp decline, suggesting momentum remains tilted toward sellers.

Technical indicators paint a mixed picture for near-term direction. The 50-day moving average provides resistance around $4.69, while the 200-day moving average offers support near $4.52.

Current prices trade between these key levels, creating a neutral technical stance that could break either direction. Support levels emerge at $4.60, with deeper support at $4.45 should selling pressure intensify.

The recent price action suggests profit-taking after copper’s strong year-to-date performance, rather than fundamental weakness in underlying demand.

Physical market conditions remain tight despite the price decline. LME copper stocks dropped to a one-year low of 179,375 tons as of May 16, while Chinese premiums for some copper grades hit five-year highs.

This inventory drawdown typically supports prices during technical corrections. Goldman Sachs maintains copper price expectations between $5.00 and $5.50, projecting supply deficits of 180,000 tons in 2025 expanding to 250,000 tons in 2026.

The bank’s analysis suggests current weakness reflects temporary factors rather than structural demand concerns. Chinese copper usage growth faces headwinds, with expectations for 0.8% growth in 2026 compared to 2.0% this year.

However, infrastructure spending and energy transition projects continue supporting baseline consumption levels. The Sprott Copper Miners ETF closed at $20.26 on recent trading, down $0.34 or 1.65%, reflecting broader pressure across copper-related investments.

Mining equities often amplify underlying commodity price movements during volatile periods. Market participants monitor upcoming Chinese economic data and potential trade policy developments for direction signals.

The combination of tight physical markets and strong year-to-date gains creates competing forces that could drive continued volatility.

Wednesday’s early trading suggests consolidation around current levels as markets digest Tuesday’s sharp decline and assess whether further weakness develops or buyers emerge at these technically significant support zones.

This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error

LatAm Markets: Live Signals → — real-time movers, turnover leaders and FX across Latin America.