Copper Holds Steady Amid Cooling China Demand

Copper prices have held above $14,000 per ton despite concerns over China's demand. Traders had been worried about the Democratic Republic of Congo's export ban on copper concentrate, but Goldman Sachs argues that it will have little impact on global supply.

The bank believes the ban largely formalizes an existing policy and affects trade flows that were already shrinking. This assessment is based on new data showing China's demand for copper is cooling down.

China is the world's largest buyer of copper, and its July imports fell 11.5% from a year earlier to 425,000 tons. The Yangshan import premium, which is the extra cost buyers pay to bring copper into China, has also slid to $101 per ton.

These indicators suggest Chinese buyers are less eager to pull metal in from overseas, which can tighten global availability and support prices on the London Metal Exchange. However, this doesn't guarantee a sharp drop in the headline price of copper.