Copper Prices Surge on China Supply Tightness and Equities Rally
Copper prices continued their upward trend for a fifth consecutive session on Monday as concerns over supply tightness in China and a rally in equities pushed the metal closer to its record high set earlier this month.
The Comex copper contract for December delivery reached an intraday high of $6.8410 per pound, its highest since September 10, while benchmark three-month copper on the London Metal Exchange (LME) touched $14,710.50 per tonne before easing back to around $14,650.
The metal's rally is largely driven by supply constraints in China, where several refineries are due for planned maintenance in October and November, according to Shanghai Metals Market. This, combined with congestion at Shanghai port, has reduced the availability of imported copper cargoes.
Meanwhile, Chinese buyers are paying a premium for metal, with the Yangshan premium reaching its highest level in nearly four years before easing to $119 per tonne on Monday. The LME cash price is now trading at a $26 per tonne premium to the three-month contract, indicating tight supply and strong demand.