The risk-on tone that was the driver of the copper price rally in January dissipated in February. The past month has seen prices weighed down by growing concerns around Chinese demand prospects and a stronger US dollar, both of which have dampened investor enthusiasm for copper. Whilst mine supply disruptions and low inventories have helped to support copper on the downside, prices have remained volatile and unpredictable. For now, hawkish comments from the Fed are weighing on sentiment. This would suggest that prices will remain under pressure over the short term in the absence of any material increase in demand, especially from China – notwithstanding the emergence of further supply-side issues.