Copper Prices Rebound as Chinese Buyers Return to Market

Copper prices have rebounded after Chinese buyers returned to the market following a recent sell-off. The rally comes as demand prospects brightened and the market brushed off a US interest-rate hike, which had initially weighed on industrial metal prices.

Benchmark copper on the London Metal Exchange rose by 1% to $14,382 a metric ton at 10:44 GMT. This increase follows a 4% drop in copper prices since hitting a record high of $14,875 a ton on September 10.

The return of Chinese buyers is seen as a positive sign for the market, with Alastair Munro, senior base metals strategist at Marex, stating that 'Chinese demand was real physical buying, not just speculation'. The Yangshan copper premium, a gauge of Chinese demand for copper imports, rose to $118 a ton on Wednesday, its highest since October 2022.