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 easing US tariff risks could release more metal into the international market and pressure futures prices, while physical tightness in China continues to support spot premiums and demand for imported cathode.

China’s copper cathode import premium rose to an all-time high Nov. 6 as falling exchange inventories, reduced domestic smelter output and limited spot availability prompted consumers to turn to imported metal.

This was the highest level since Platts launched the assessment in August 2014.

This story was originally published by Hellenic Shipping News. Read the full story at Hellenic Shipping News →