LME Aluminum 3M Select trades $58.25 higher to $3105 at 8:34:18 AM
LME Copper 3M Select trades $67.25 higher to $14076.5 at 8:34:22 AM
(Bloomberg) – Copper buyers in China are scrambling for physical metal, with spot premiums soaring as supplies tighten sharply in the world’s biggest consumer. The premium for spot copper in Shanghai jumped to 2,100 yuan ($315) a ton over futures on Thursday, the highest since 2021, according to Shanghai Metals Market. The surge is the latest sign that immediately available cathode is becoming increasingly scarce as production curbs by Chinese smelters tighten supplies. The squeeze is also showing up in futures, with Shanghai copper for December trading at a $900-a-ton premium to January, the steepest backwardation since 2022. Meanwhile, the Yangshan premium for imported copper, another gauge of domestic demand, extended its recent surge to a record $210 a ton.
“The persistent shortage is due to production cuts at domestic smelters and limited supplies from overseas such as Africa and Russia,” said Zhou Xiaoou, an analyst at Zijin Tianfeng Futures Co. “Fabricators are buying hand to mouth.”
Copper has rallied to record levels this year as bets the Trump administration would slap tariffs on refined metal drew huge volumes to the US, squeezing markets elsewhere. The surged has eased in recent weeks, however, as concerns mount over the durability of the spending boom on data centers that has become a key driver of demand. The surge in spot premiums is being driven primarily by a shortage of available metal rather than growth in demand, according to a note from Mysteel. While buying has improved slightly following the pullback in prices, the interest has come mainly from large cable manufacturers simply topping up thin inventories, Mysteel said. Copper futures were 0.4% higher at $14,067 a ton on the London Metal Exchange as of 12:14 p.m. local time. All base metals were stronger, with aluminum up 1.9% and nickel rallying 2.6%.
CME HRC Steel last traded at $1356 and $1 higher at 8:42:22 PM
