Why this ASX copper stock is sinking 7% today

Sandfire shares slide as copper prices pull back after a strong rally over the past year.

The Sandfire Resources Ltd (ASX: SFR) share price is under pressure during late morning trade on Friday.

At the time of writing, shares in the copper miner are down 7.25% to $17.53.

The decline comes despite the stock's strong run over the past year. Sandfire shares are still up more than 50% over the past year after rallying strongly through 2025 and early 2026.

So, what is pushing the ASX copper stock lower today?

Let's take a closer look.

Layers of copper pipes.

Image source: Getty Images

Copper price pullback weighs on the sector

The main driver behind today's decline appears to be a pullback in copper prices.

Copper is currently trading at US$5.78 per pound, down about 1.20%.

Prices have eased after inventories tracked by the London Metal Exchange climbed to a 16-month high following a rise in deliveries into US warehouses. Higher inventories can signal softer short-term demand or improving supply, which often pressures prices.

Copper futures have also been affected by a stronger US dollar, which tends to weigh on commodity prices. Ongoing geopolitical tensions between the United States, Israel, and Iran have also added uncertainty to global markets.

While the recent move lower has rattled sentiment, it is important to keep the bigger picture in mind.

Copper prices are still up more than 20% over the past year. The gains have been supported by growing demand tied to electrification, renewable energy infrastructure, and electric vehicles.

Strong profit growth recently reported

The recent weakness also follows the release of Sandfire's latest financial results.

The company reported a 94% increase in net profit after tax (NPAT) to US$96.3 million for the first half of FY26.

Sandfire is one of the larger copper producers listed on the ASX and operates assets across several regions.

Its key operations include the MATSA copper operations in Spain and the Motheo copper project in Botswana.

These assets have helped drive a significant lift in production and earnings over the past year as the company expanded its global copper footprint.

What brokers are saying about the stock

Following the results, several brokers reviewed their outlook for Sandfire shares.

Morgan Stanley maintained a sell rating with a price target of $16.20.

Macquarie reiterated a hold rating with a target price of $20.10, while Morgans also kept a hold rating and lifted its price target to $20.40.

Meanwhile, Canaccord Genuity upgraded the stock to a buy rating and increased its price target to $21.

Sandfire shares reached a record high of $21.75 in late January, highlighting the strength of the rally before the recent pullback.

Foolish Takeaway

While the Sandfire share price has fallen today, the decline appears to be tied largely to short-term weakness in copper prices.

The broader trend for copper remains constructive, with demand supported by electrification, renewable energy projects, and growing power infrastructure needs.

With Sandfire heavily exposed to copper, movements in the metal's price will likely remain a key driver of the share price.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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