China's Copper Demand Boosts Premiums to Near Four-Year High
The copper market saw a boost in physical demand from China, leading to higher premiums. According to SMM Morning Meeting Summary, Shanghai Metals Market reported that Yangshan copper premiums rose by 2.5% on Thursday, September 17, reaching nearly four-year highs.
LME copper futures also rose due to improved demand outlook and a softer US dollar. At the closing of London time on September 17 (00:00 Beijing time on September 18), three-month LME copper closed at $14,491.5/mt, up 1.82% from its previous close.
Marex senior base metals strategist Alastair Munro noted that Chinese buyers have returned to the market, although volumes are not massive. This strong physical demand is reflected in domestic premiums, with spot premiums over SHFE transaction prices reaching 645 yuan/mt on Wednesday, a level last seen in December 2023.