Copper Nears Record High on Resilient Chinese Demand
Copper prices have been on a tear, rising for a fourth consecutive session and nearing its record high of $14,875. The metal gained about 2% over the week, with three-month copper on the London Metal Exchange (LME) rising 0.2% to $14,521 a metric tonne.
The increase in prices is due in part to resilient Chinese demand, tight scrap supply, and declining LME inventories. The Yangshan copper premium has risen 72% so far this month to $124 a ton, its highest level in nearly four years.
Market participants are also looking ahead to the forthcoming meeting between US President Donald Trump and Chinese President Xi Jinping, with trade relations remaining an important variable for metals demand and supply chains. Supply constraints are providing another pillar of support for copper, with Goldman Sachs saying domestic copper scrap availability in China remained tight, contributing to further delays in the return of smelting capacity from maintenance.