Copper Holds Advance on Tight China Supply

Copper futures climbed to around $6.65 per pound on Monday, extending gains for a fifth consecutive session, supported by signs of stronger demand and expectations of tighter global supply. The Yangshan premium, a key gauge of Chinese copper demand, rose to $121 a ton last week, reaching its highest level since November 2022. Copper also benefited from expectations of sustained long-term consumption driven by data centers and renewable energy projects. On the supply side, major producers including Chile, Indonesia and the Democratic Republic of Congo continued to face disruptions at several key mines due to operational issues, fatal accidents and severe storms, among other factors. Meanwhile, traders are closely watching US copper tariff policy and its potential effects on global trade flows.

Copper futures rose above $6.60 per pound on Friday, extending gains for the fourth straight session, supported by signs of stronger demand from China. The Yangshan premium, a key indicator of Chinese copper demand, climbed to $121 a ton on Thursday, reaching its highest level since November 2022. Copper was also supported by expectations of sustained long-term consumption from data centers and renewable energy projects, along with supply disruptions at several major mines. Earlier in the week, however, copper prices dropped to multi-week lows following reports that the Trump administration had postponed a decision on potential tariffs on refined copper. Meanwhile, warehouses monitored by the London Metal Exchange recorded fresh deliveries, with inflows reaching their highest level in nearly four weeks. The increase in inventories pushed London copper into contango, pointing to ample availability in the near term.

Copper futures climbed to around $6.45 per pound on Thursday, marking a third consecutive session of gains as the broader metals complex rebounded following a widely anticipated interest rate hike by the US Federal Reserve. However, investors remained cautious after the Fed signaled that additional rate increases could be necessary as policymakers work to curb persistent inflationary pressures, which could weigh on non-yielding metals. Copper also found support from long-term demand expectations tied to data centers and renewable energy, alongside supply disruptions at major mines. Meanwhile, copper fell to multi-week lows earlier this week after reports that the Trump administration had delayed a decision on imposing tariffs on refined metal. Warehouses monitored by the London Metal Exchange also received fresh copper deliveries and posted their largest inflows in nearly four weeks, pushing London prices into contango and indicating ample near-term availability.