Copper Prices Surge as Chinese Buyers Return Amid Record Demand

Copper prices rose on Thursday as Chinese buyers returned to the market after a recent decline. The metal, used in power and construction industries, climbed 1.2% higher to $14,408 per metric ton on the London Metal Exchange.

This rebound comes despite a US interest rate increase that typically strengthens the dollar and makes dollar-priced metals more expensive for holders of other currencies. However, strong physical demand in China remains a driving force behind copper prices.

The Yangshan copper premium, a gauge of Chinese demand for copper imports, rose to $118 per ton on Wednesday, its highest since October 2022. Domestic physical market premiums also climbed to 645 yuan per ton, the highest since December 2023.