Copper Prices Surge as Chinese Buyers Snap Up Metal Amid Scarcity Concerns
Copper prices have rebounded as Chinese buyers return to the market, outpacing concerns about the stronger US dollar and higher interest rates. According to Marex, a commodities broker, demand is characterized as 'real physical buying' rather than speculative activity.
The Yangshan copper premium has climbed to $118 per ton, its highest level since October 2022, while domestic premiums over Shanghai Futures Exchange prices have reached 645 yuan. This indicates that Chinese buyers are willing to pay a premium for immediate delivery of copper, reflecting concerns about near-term scarcity.
Visible inventories on the Shanghai Futures Exchange have fallen to 54,780 tons, their lowest level since January 2024, due in part to shipments to the US as firms position themselves for possible import tariffs. This tightening of supply is expected to push spot and near-dated copper prices up faster than later deliveries.