Copper Rallies to All-Time High

Copper futures fell to around $6.55 per pound, hitting near two-week lows as elevated prices weakened demand and discouraged buyers in top consumer China. The Yangshan premium, which reflects the premium paid above the benchmark LME copper price for refined copper imported into China, declined to $96 per ton after reaching $115 a ton last month. However, concerns over tightening supply continued to underpin prices amid expectations for constrained global mine output. Chilean state-owned miner Codelco reportedly expects lower copper production this year as it faces setbacks at its mines and development projects. The company has abandoned its previous target of producing 1.34 million metric tons this year, compared with last year’s revised output of 1.307 million tons. Traders also remained cautious about potential US import tariffs on copper, which have continued to divert metal away from international markets and into US warehouses.

Copper futures climbed toward $6.65 per pound on Wednesday, rising for the third straight session, supported by signs of tightening global supply and expectations for constrained mine output. Traders remained cautious over potential US import tariffs on copper, which have continued to redirect metal from international markets into US warehouses. The Democratic Republic of Congo also recently imposed an export ban on copper concentrate, although the move is unlikely to have a major impact on global supplies. Meanwhile, the long-term outlook for copper extraction and production is becoming increasingly constrained by declining ore grades, environmental regulations and geopolitical risks. On the demand side, copper continues to benefit from robust consumption driven by the global shift toward electrification and the expansion of artificial intelligence data centers.

Copper futures slipped below $6.6 per pound on Monday, retreating from record levels reached last week as traders took profits while weighing signs of tightening global supply. Concerns over potential supply disruptions from the Democratic Republic of Congo’s copper concentrate export ban also eased, with Goldman Sachs saying it expected the measure to have no significant impact on global copper balances. However, traders remained cautious over possible US import tariffs on copper, which continued to redirect metal from international markets into US warehouses. On the demand front, data released over the weekend showed both consumer and producer inflation in top consumer China slowed in July, pointing to persistently weak domestic demand. Data on Friday also showed China’s imports of unwrought copper and copper products dropped 11.5% year on year to 425,000 tonnes in July, while imports for January-July fell 6.2% to 2.92 million tonnes.