Copper traded just below $5.90 per pound on Wednesday after three consecutive sessions of gains, supported by opportunistic dip-buying from Chinese fabricators capitalizing on lower prices. In China, spot premiums have been rising as the recent price decline spurred a wave of downstream procurement, particularly from the construction and renewable energy sectors.
At the same time, market participants are increasingly focused on mounting pressure in the midstream segment. Annual copper smelting and refining charges for 2026 have plunged to $0 per ton, highlighting an acute global shortage of copper concentrate that poses a risk to refined copper output. Although record-high exchange inventories in Shanghai initially limited further price appreciation, the broader narrative of a long-term structural deficit—driven by demand from AI data centers and rising defense expenditures—continues to support the market.
Separately, workers at Glencore’s copper refinery in Australia have threatened to strike after failing to reach an agreement in a pay dispute.
