China copper premium hits record as market weighs US stock shift
Concerns over the potential redistribution of large copper stocks accumulated in the US are rising among China-based market participants, with any return of metal to the international market potentially reshaping global trade flows as China’s copper import premium hits a record high amid tightening domestic availability. The market is facing competing pressures, with expectations that ...
China's copper import premium has reached an all-time high, driven by concerns that large copper stocks accumulated in the US might be returned to the global market, potentially reshaping trade flows. The premium, which rose to $220 per metric ton as of Nov. 6, is a reflection of the tight domestic supply and increased demand for imported cathode in China.
This surge in premiums comes as market participants consider the impact of potential US tariff changes following the midterm elections, which could ease existing risks and release more copper into the international market. However, the physical tightness in China continues to support spot premiums and the demand for imported cathode.
Meanwhile, the price gap between COMEX and LME copper prices has narrowed, signaling a weakening incentive for copper to move into the US. Despite this, any redistribution of US copper inventories is expected to be gradual, given the complex interplay of logistics and domestic demand in the United States.
Written by urgent.news from Hellenic Shipping News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
