Copper and aluminium prices have retreated from their recent peaks, with the red metal falling 6% and the silvery metal dropping 17.5% over the past month.
Despite the sharp correction, analysts argue that the fundamental case for higher prices remains intact, citing persistent supply deficits and ongoing geopolitical friction that continues to threaten supply chains.
The pullback reflects a broader cooling in sentiment after copper traded at record levels earlier this year, driven by the global energy transition.
However, market participants are now weighing fresh structural headwinds that could dampen near-term demand growth.
For aluminium, the decline has been more pronounced, with prices on the London Metal Exchange hovering near three-month lows.
The pressure stems from a strengthening US dollar and growing optimism regarding supply stability in the Gulf region, which has eased fears of immediate disruption.