Copper Rebounds on Tightening Supply in China
Copper futures climbed toward $6.30 per pound on Wednesday, recovering from four-month lows amid tightening physical supply in China, the world’s largest copper consumer. Import premiums in the country have reached record levels in recent weeks, while refined copper shipments have declined this year and domestic smelters have reduced production due to rising ore costs and weaker profit margins. China has also faced difficulties replenishing its inventories as substantial volumes of copper have been redirected to the US ahead of potential import tariffs. Additional support came from renewed investor interest in the artificial intelligence sector following strong earnings from neocloud provider CoreWeave. Copper benefits directly from the global expansion of AI infrastructure due to its essential role in data centers and power networks. However, a Democratic sweep in the US midterm elections threatened tighter AI regulations and slower data center development.
Copper futures climbed toward $6.30 per pound on Wednesday, recovering from four-month lows amid tightening physical supply in China, the world’s largest copper consumer. Import premiums in the country have reached record levels in recent weeks, while refined copper shipments have declined this year and domestic smelters have reduced production due to rising ore costs and weaker profit margins. China has also faced difficulties replenishing its inventories as substantial volumes of copper have been redirected to the US ahead of potential import tariffs.
Additional support came from renewed investor interest in the artificial intelligence sector following strong earnings from neocloud provider CoreWeave. Copper benefits directly from the global expansion of AI infrastructure due to its essential role in data centers and power networks. However, a Democratic sweep in the US midterm elections threatened tighter AI regulations and slower data center development.