Copper Climbs Toward Seven-Week High

Copper futures rose toward $6.52 per pound on Thursday, hovering near their highest level in seven weeks, as tightening supply and falling inventories continued to support prices. Copper stockpiles in LME-registered and Shanghai-monitored warehouses have declined sharply in recent months, boosting the Yangshan copper premium, a gauge of China's import demand, to a multi-year high of $115 per ton. Supply was further constrained by smelter maintenance, typhoon-related stockpiling, and limited scrap availability in China, while traders continued shipping metal to the US ahead of a potential tariff on refined copper imports. However, gains were capped as rising oil prices renewed inflation concerns and strengthened expectations for higher interest rates, weighing on the demand outlook for industrial metals.

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.