Goldman Sachs warns that the uptrend in base metals faces risks as terminal demand has shown negative reactions.

Goldman Sachs Group has stated that the upward trend in base metals since the beginning of the year will face headwinds, as the sharp price increases and bullish market sentiment deviate from the reality of weakening manufacturing demand, especially evident in the Chinese market. "Production companies at the frontline are starting to show negative reactions," said Trina Chen, Co-Head of Stock Research at Goldman Sachs, in an interview. "We see a decline in demand." In the early weeks of 2026, prices of various metals such as copper and aluminum have continued to rise, leading to a surge of global investors entering the industrial metals market, betting on supply tightening, a weaker US dollar, and interest rate cuts by the Federal Reserve. Trina Chen pointed out that a recent survey by Goldman Sachs on the copper market showed that orders for metal processing companies have dropped by 10% to 30% as users from industries ranging from consumer electronics to hardware have reduced their purchases.