Copper prices are currently navigating a complex environment defined by a tug-of-war between a weakening U.S. dollar and cooling industrial demand. As of February 10, 2026, copper futures on the COMEX are trading near $5.91 per pound, reflecting a slight retreat from record peaks of $6.58 reached just weeks ago in late January. While the U.S. dollar index has slid to monthly lows—making commodities more affordable for international buyers—this tailwind has been countered by a significant seasonal slowdown. Top consumer China is entering the Lunar New Year holiday period, leading many manufacturers to pause operations. This has resulted in a 15% to 20% drop in regional manufacturing demand, contributing to a noticeable rise in global stockpiles. Inventory levels have reached critical thresholds this week. Total exchange-monitored stocks rose by 32.4 kilotons to reach approximately 964,000 tons. Specifically, LME inventories have climbed to 285,000 tons, the highest level since mid-2023, while COMEX stocks are holding at 18-month highs near 259,000 tons. On the supply side, the market remains structurally tight. Refined copper output in China is projected to grow by only 5% in 2026, a sharp deceleration from the 10% growth seen last year. Mining operations in Chile and Peru continue to struggle with aging infrastructure and declining ore grades, leading many analysts to forecast a refined copper deficit of roughly 330,000 metric tons for the full year. The medium-term outlook is increasingly shaped by high-growth sectors. AI-driven data center expansion and energy transition infrastructure are estimated to drive 60% of copper demand growth through the end of the decade. Major financial institutions have adjusted their 2026 average price targets upward, with forecasts now ranging between $11,300 and $12,500 per metric ton. Despite the current seasonal correction, the fundamental narrative remains intact. Market participants are closely watching for a potential rebound as Chinese industrial activity resumes and the impact of a softer dollar continues to filter through the global supply chain. [Copper Market Analysis](https://www.youtube.com/watch?v=cf9Viu1aOso) This video provides a deep dive into the structural supply shortages and long-term demand drivers, such as AI and green energy, that are shaping the 2026 copper market. http://googleusercontent.com/youtube_content/0