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Copper prices hold near $13,600 per tonne as China tightens supply
Yangshan import premiums have jumped to $100/t, the highest in more than a year, as scrap shortages and Chinese smelter maintenance reduce available metal.
Copper is trading near $13,600 per tonne, supported by tightening physical conditions in China, ING Commodities Strategists Warren Patterson and Ewa Manthey said via FXStreet Insights.
They pointed to a surge in Yangshan import premiums to $100/t, up from about $20/t in late January, driven by scrap shortages and smelter maintenance outages that have constrained refined metal supply.
The strategists also cited low inventories, with Chinese copper inventories near the bottom of their seasonal range and LME stocks at their lowest since March as metal is pulled into the Chinese market.
While they see copper fundamentals as supportive in the near term, they noted that concerns about global growth and Federal Reserve risks could limit further upside.
Latest closeCopper $6.287 ▼0.1%