Copper Sees Rebound as Chinese Buyers Return to Market

Copper prices have rebounded after Chinese buyers returned to the market following a recent selloff, according to Alastair Munro, senior base metals strategist at Marex. The metal's price has dropped around 4% since hitting a record high of $14,875 a tonne on September 10.

The US dollar softened, making dollar-priced metals cheaper for holders of other currencies and boosting demand. Chinese demand is considered real physical buying, not just speculation.

The Yangshan copper premium, which reflects Chinese demand for copper imports, rose to $118 a tonne on Wednesday, its highest since October 2022. Similarly, domestic physical market premiums in China climbed to 645 yuan a tonne on Wednesday, their highest since December 2023.