Copper Holds Advance on Tight China Supply

Copper futures held above $6.45 per pound on Wednesday after surging more than 3% in the previous session, supported by signs of tightening supply in top consumer China. China’s premium for imported copper climbed to $100 per tonne, the highest level since May last year, as Beijing’s crackdown on VAT fraud reduced scrap availability and increased demand for refined copper imports. Copper inventories across China have also continued to decline, while a series of temporary smelter maintenance outages further tightened supply. Meanwhile, stockpiles in LME warehouses dropped to their lowest level since March as traders withdrew copper for delivery into the Chinese market. By contrast, Comex-tracked copper inventories in the US climbed to a record high as shipments were redirected to the country ahead of potential US import tariffs.

Copper surged nearly 3% to around $6.48 per pound on Tuesday, hitting its highest level in five weeks, as tightening physical market conditions in China and supply disruptions in major producing regions continued to support prices. China's premium for imported copper climbed to $100 per tonne, the highest since May last year, as Beijing's crackdown on VAT fraud constrained scrap availability and boosted demand for refined copper imports. Meanwhile, inventories in LME warehouses fell to their lowest level since March, while Chinese stockpiles remained near the bottom of their seasonal range as traders redirected metal to the world's largest consumer. Supply concerns were further reinforced by weather-related disruptions in Chile, with recent storms weighing on output at major miners including South32, Antofagasta, and Codelco. The bullish supply outlook offset jitters over the ongoing US-Iran conflict.

Copper climbed above $6.35 per pound on Tuesday, extending gains from the previous session as persistent supply concerns continued to offset demand-side uncertainties. A powerful storm in top producer Chile disrupted operations at several copper mines and ports across central Chile, prompting major miners including Codelco, Antofagasta, and Anglo American to activate safety protocols. Meanwhile, Antofagasta reported that first-half copper production fell 9.5% to 285,000 tonnes due to weaker output at two key mines. BHP also warned that its Chilean copper production is expected to decline next year, while the IEA flagged tightening sulphuric acid supplies as a result of the escalating Middle East conflict. US attacks on Iran continued for a tenth straight day, with President Donald Trump warning that Tehran would be held responsible for the deaths of three US service members.