FX.co ★ Copper Rebounds on China Supply Tightness

Copper futures rose above $6.30 per pound on Monday, rebounding from near four-month lows as mounting signs of tightening supply in China—the world’s largest copper consumer—lent support, with import premiums hitting record highs.

Industry data showed the Yangshan copper premium, a key gauge of Chinese demand for imported copper, jumped to $215 per ton, while the domestic premium over SHFE contracts climbed to 2,615 yuan. At the same time, copper inventories monitored by the Shanghai Futures Exchange dropped sharply to 33,848 tons last week, their lowest level since early January 2024.

Prices also drew strength from a rebound in global equity markets, as fears over tougher, Democrat-led regulation of the AI industry eased. Copper stands to benefit directly from the global expansion of AI because of its critical role in data centers and power generation infrastructure.

In addition, the Democrats’ sweeping midterm victory has diminished the likelihood that Trump’s proposed tariffs on refined copper will be implemented.