BCA Research maintains short position on copper amid Chinese demand concerns

Investing.com - BCA Research has maintained its cyclically short position on LME copper while introducing a stop-loss at $11,500, according to a report released Thursday.

Supply disruptions and expectations of potential U.S. import tariffs have boosted copper prices throughout 2025, the research firm noted. Despite these supportive factors, BCA emphasized that historically, supply shocks have not delivered durable upside for copper prices.

The research firm pointed out that uncertainty regarding possible future U.S. import levies on refined copper will continue to distort the metal’s global market until authorities make a final decision on tariffs.

BCA highlighted that copper consumption has not yet moved structurally higher, despite increased demand from energy transition projects, grid expansion, and data center construction. The firm noted that traditional sources of copper demand have remained very weak.

Chinese economic indicators suggest cyclical headwinds for copper over the coming six-to-twelve months, with BCA specifically warning that weakening Chinese demand and contracting global manufacturing will likely pressure the metal’s price.

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