COPPER - AI Demand & China Flows Keep Copper Supported Above Breakout Zone

Reza Maulana

Copper is holding at $6.18–$6.24/lb, sustaining its position above the breakout zone despite momentum moderating after the recent sharp rally. This is normal post-breakout behavior the market is digesting gains, not distributing. Bullish positioning remains intact.

The structural thesis has not changed. AI data center buildout, electrification, and constrained global mine supply remain the dominant drivers. China’s April copper concentrate imports hit a near-record of 3 million tonnes, and China’s state grid committed to spending 4 trillion yuan on grid upgrades through 2030. On the supply side, spot treatment charges remain deeply negative globally smelters are being squeezed by the mismatch between processing capacity and a structural ore shortage. The hot CPI print strengthened the USD, which is a mild negative, but one macro data point is not enough to derail copper’s structural story.

The $6.20 level has now become breakout support. Holding here confirms continuation toward $6.40–$6.50. A close below $5.95 would signal a false breakout and risk a return to $5.70–$5.90. As long as price holds above $6.00, the bias remains firmly bullish.

STRUCTURE
Bullish trend continuation
MOMENTUM
Strong, moderating
KEY LEVEL
$6.20 support / $6.40–6.50 target
DAILY VOLATILITY
~2.3%
YESTERDAY HIGH
$6.29/lb (est.)
YESTERDAY LOW
$6.10/lb (est.)
WHAT TO WATCH
China demand data, USD move, risk sentiment
BIAS
Bullish above $6.00
INVALIDATION
Close below $5.95

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