FX.co ★ Copper Slips as China Demand Slows

Copper futures fell below $6.55 per pound on Thursday, hitting their lowest level in more than a week as elevated prices weakened demand and deterred buyers in top consumer China. Reflecting softer import appetite, the Yangshan premium—an additional fee paid above the LME benchmark for refined copper shipped into China—slipped to $96 per ton, down from $115 per ton last month.

Even so, concerns over tightening supply continued to support prices amid expectations of constrained global mine output. Chilean state-owned producer Codelco is reportedly bracing for lower copper production this year after encountering setbacks at both operating mines and development projects. The company has scrapped its earlier target of producing 1.34 million metric tons in 2024, after revising last year’s output to 1.307 million tons.

At the same time, traders remained wary of possible US import tariffs on copper, which have been diverting metal away from international markets and into US warehouses, further influencing the global supply landscape.