Copper Gains 3.2% as Commodities Rally Following Friday’s Sharp Decline

Copper prices climbed to $9,120 per metric ton on Monday morning, marking a 3.2% turnaround from Friday’s 4.1% drop, which had pushed the metal to a one-week low. The rebound followed a wave of selling that saw key base metals contract across global exchanges, with aluminum, nickel, and zinc also posting double-digit percentage declines by Friday’s close. The metals rally reflects shifting market sentiment amid a sharp reversal in macroeconomic positioning. After Friday’s selloff, which was fueled by renewed concerns over global growth and a stronger U.S. dollar, traders began reassessing oversold conditions. Technical indicators signaled extreme short positioning, prompting a wave of buying pressure, particularly in copper, which serves as a leading indicator for industrial activity. Copper’s recovery was mirrored in other commodities: aluminum rose 2.8%, nickel climbed 3.5%, and zinc gained 2.1%. The broader metal complex’s performance has strengthened speculation that supply constraints in major producing regions—particularly in Chile and Indonesia—may soon tighten inventories further. Meanwhile, Chinese imports of copper rose 12% in November compared to the prior month, supporting demand expectations. Market participants now await the release of U.S. manufacturing data later this week, which could confirm whether the recent selloff was overreaction or a signal of deeper economic weakness. The rebound has also lifted sentiment in related equities, with shares of major miners like Freeport-McMoRan (FCX) and Antofagasta (ANTO) up 4.6% and 3.8% respectively in early trading.