LME Copper Inventories Fuel China's Copper Import Surge

China's copper import arbitrage has shown signs of recovery as spot copper premiums surge. The recent increase in LME (London Metal Exchange) copper inventories has shifted the futures-spot structure, leading to a rise in imports.

Downstream demand for imported copper in the Shanghai region has improved significantly, while supply remains relatively tight. In the morning session, cargoes at Lingang were nearly depleted, causing spot copper premiums to skyrocket.

This trend indicates that China's copper import arbitrage is on the rise, driven by the increasing premium of spot copper over LME prices. As a result, downstream demand has picked up in the Shanghai region, highlighting the importance of this market for global copper trade.