Copper Prices Rise on Robust Chinese Demand and Tight Supply

Copper prices have risen due to robust demand from China and tight domestic supply. The Yangshan copper premium, an indicator of Chinese import demand, surged 72% in September to $124 per tonne, its highest level in nearly four years.

The London Metal Exchange (LME) registered warehouse stocks declined to 139,650 tonnes after cancellations, mainly in Taiwan and Hong Kong. Meanwhile, Shanghai Futures Exchange inventories increased 2.4% to 56,073 tonnes after three weeks of declines.

Chilean copper output fell 9.4% in July, with Codelco production declining 5% to 112,800 tonnes and Escondida output dropping 22.1% to 89,400 tonnes. However, Collahuasi production increased 12.3% to 38,400 tonnes.

China's copper imports fell 9.7% in August to 382,000 tonnes, down from 425,000 tonnes in July, while January-August imports declined 6.7% year-on-year to 3.30 million tonnes.