Copper prices rallied as January progressed, then dropped precipitously later in the month due to demand uncertainty stemming from the coronavirus outbreak in China, a major metal buyer.
If Chinese authorities fail to contain the virus in the coming weeks, any negative effect on the country’s economic growth would negatively impact sentiment.
However, copper’s fundamentals remain tight and improving global macroeconomic data is expected to support sentiment once the current panic selling linked to the virus subsides.