Copper Price Forecast: Aluminum Substitution and Tariff Risk Test Record Rally
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Key Points:
- Copper prices remain bullish as long as they hold above $5.20.
- High prices are increasing the risk of aluminum substitution.
- U.S. tariff uncertainty may keep copper prices volatile.
Copper (XCU) prices remain near record levels after the strong rally in 2026. But the market is entering a more difficult phase. In my view, the long term trend remains bullish as long as copper holds above $5.20 per pound. But the high prices, aluminum substitution and U.S. tariff uncertainty may keep prices volatile in the short term. This article discusses the macro drivers, key copper levels and the risks that may decide whether prices break above $6.70 or correct toward support.