China's Copper Appetite Fuels Price Stability
Copper prices held steady this week despite concerns about US tariffs and interest rate hikes. One reason for the stability is China's continued demand for copper, which has driven up the Yangshan import premium to its highest level since October 2022.
The Yangshan import premium measures the extra fee paid to bring refined copper into China. It climbed to $121 a metric ton on Thursday, up from $85 at the end of last week. A higher premium indicates that Chinese buyers are willing to pay more for delivered supply now rather than later.
This demand signal can offset macro headwinds such as possible US tariffs and interest rate hikes by the Federal Reserve. Traders are still debating whether Washington will impose tariffs on refined copper, which could cool industrial demand and strengthen the dollar.