Copper prices consolidate at high levels—should you start "buying insurance"? [Pei Fengke Masterclass 3.3]

The logic all seems sound:

AI and power grid investments are providing support,

Traditional demand hasn’t fully picked up yet,

And prices haven’t shown obvious weakness.

But anyone who has actually traded will find this feeling very familiar:

The more “everyone can explain the logic” at a certain price point, the more likely things can go wrong.

Why is that?

Because at this stage, what determines the price is no longer only the “fundamentals”, but the shifting behavior of different funds:

Downstream sectors are setting prices between 95,000 and 100,000, but only on the premise that no major risk occurs

Traders are starting to consider the pressure of high inventories as the off-season approaches

Macro funds are reassessing the AI narrative

Once there is any liquidity or geopolitical disruption, the speed of price decline is often much faster than the rise

In other words, the logic for price increases is still there, but the “certainty” supporting it is weakening.

So, when the logic hasn’t been disproved but risk is building, should you take precautions early?

Why do professional traders choose to “pay for protection” in such positions?

If a real shock hits, to what level could copper drop? And how should you get back in?

In this section, Peifengke·Chen Dapeng will start with the 2024 short squeeze and the expected high-level fluctuations in 2025, dissecting: when copper prices are at “the easiest place to go wrong”, what choices are different traders really making?