Copper Prices Retreat from Record Highs as Stockpiles Surge

Copper prices retreated to approximately $12,700 per ton on February 22, 2026, correcting from a record high above $13,000 set in January. Analysts attribute the pullback to surging inventories and subdued demand in China, differentiating copper's near-term trajectory from the ongoing gold rally. Exchange-monitored stockpiles surpassed one million tons for the first time since 2003, prompting significant long liquidation. While long-term demand drivers such as AI data centers and electrification remain intact, Saxo Bank notes that ample immediate supply and the Lunar New Year holiday have capped upside potential. Goldman Sachs projects prices may decline later in 2026 following clarity on potential U.S. tariffs, forecasting a base case of a 15% tariff announcement in mid-2026. Meanwhile, Deutsche Bank maintains an average price forecast of $12,125 per metric ton for 2026, anticipating a potential peak in the second quarter as post-holiday demand rebounds.