Copper futures held steady at $6.40 per pound on Thursday, buoyed by robust demand from China, the world's top consumer of the metal. Buyers are competing for limited supplies, driving up spot premiums. Data showed that Shanghai's spot copper premium hit 1,900 yuan per ton above futures prices on Wednesday, the highest level since 2021.
The surge in premiums reflects production cuts by Chinese smelters, as rising ore costs and declining byproduct prices threaten to squeeze profits. Restricted imports from key suppliers, particularly Africa and Russia, are also tightening supply.
Despite the support from China, copper prices remain lower for the week due to a broader selloff in artificial intelligence-related stocks. Concerns that Democratic control of the US Congress could impact future data-center investments are weighing on the market.
Copper is a critical material in the global AI expansion, widely used in data centers, power grids, and electrical infrastructure.