Copper prices have entered a sharp consolidation phase in February 2026, retreating from record highs established just weeks ago. In global markets, the metal fell to approximately **$5.75 per pound**, a significant drop from the January peak of over **$6.50 per pound**. This **15%** decline is largely attributed to the Lunar New Year holiday in China, which has halted activity in the world’s largest copper-consuming nation. Trading volumes have thinned as major Chinese manufacturing hubs extended shutdowns, some of which began as early as late January and are expected to last through late February. On the London Metal Exchange (LME), copper futures recently slipped to **$12,780 per tonne**, while domestic prices on India’s Multi Commodity Exchange (MCX) reached intraday lows of **₹1,179 per kg**. Analysts note that this cooling period is intensified by a surge in global exchange inventories, which have climbed toward a 21-year high of over **970,000 tons**. Despite the current price volatility, the long-term outlook remains underpinned by severe structural supply constraints. The transition to renewable energy, the expansion of AI data centers, and massive power grid modernization programs are projected to drive global demand to **28 million tonnes** this year. Market participants are closely monitoring the **$6.00 per pound** level as a critical psychological and technical threshold. While short-term selling pressure persists, many traders view this as a necessary correction rather than a reversal of the multi-year bullish trend. Stabilization is expected to depend on the resumption of Chinese industrial activity in March. Early indicators suggest that Chinese buyers may return aggressively if prices hold below key resistance levels, seeking to replenish depleted stockpiles for the spring construction season.