Copper Prices Rally as Chinese Demand Hits Multi-Year Highs

Benchmark copper prices on the London Metal Exchange rose 1.6 percent to $14,456 a metric tonne on Thursday. The rally followed a return of Chinese buyers to the physical market and a softening of the US dollar, which reduced costs for international buyers of dollar-priced metals.

Indicators of Chinese demand reached significant peaks, with the Yangshan copper premium hitting its highest level since October 2022 and domestic physical market premiums reaching their highest since December 2023. Alastair Munro, a senior base metals strategist at Marex, noted that this demand consists of real physical buying.

Copper stocks in Shanghai Futures Exchange warehouses fell to their lowest levels since January 2024. This decline occurred partly as traders and producers moved metal to the United States in anticipation of import tariffs. Other base metals, including zinc, aluminium, lead, tin, and nickel, also recorded price gains during the session.