Copper Finds Support Amid Tightening Supply in China

2026-11-05 05:01 By Jam Kaimo Samonte 1 min. read

Copper futures steadied around $6.40 per pound on Thursday, supported by strong physical demand from China, the world's largest copper consumer, as buyers compete for limited supplies and spot premiums continue to climb.

Industry data showed that Shanghai's spot copper premium surged to 1,900 yuan per ton above futures prices on Wednesday, marking its highest level since 2021.

The increase reflects production cuts by Chinese smelters, as rising ore costs and declining byproduct prices threaten to generate significant losses, alongside restricted imports from overseas suppliers, particularly Africa and Russia.

Nevertheless, copper remains lower for the week amid a broader selloff in artificial intelligence-related stocks and concerns that Democratic control of the US Congress could affect future data-center investments.

As a key material in the global AI expansion, copper is widely used in data centers, power grids and electrical infrastructure.



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2026-11-05
Copper Finds Support Amid Tightening Supply in China
Copper futures steadied around $6.40 per pound on Thursday, supported by strong physical demand from China, the world's largest copper consumer, as buyers compete for limited supplies and spot premiums continue to climb. Industry data showed that Shanghai's spot copper premium surged to 1,900 yuan per ton above futures prices on Wednesday, marking its highest level since 2021. The increase reflects production cuts by Chinese smelters, as rising ore costs and declining byproduct prices threaten to generate significant losses, alongside restricted imports from overseas suppliers, particularly Africa and Russia. Nevertheless, copper remains lower for the week amid a broader selloff in artificial intelligence-related stocks and concerns that Democratic control of the US Congress could affect future data-center investments. As a key material in the global AI expansion, copper is widely used in data centers, power grids and electrical infrastructure.
2026-11-05