Copper jumped nearly 3% to about $6.48 per pound on Tuesday, its highest level in five weeks, as tightening physical market conditions in China and supply disruptions in key producing regions continued to underpin prices. China’s premium for imported copper rose to $100 per tonne, the highest since May of last year, after Beijing’s crackdown on VAT fraud curtailed scrap availability and lifted demand for refined copper imports.
At the same time, inventories in LME warehouses fell to their lowest level since March, while Chinese stockpiles stayed near the bottom of their typical seasonal range as traders diverted metal to the world’s largest consumer. Supply worries were further amplified by weather-related disruptions in Chile, where recent storms have weighed on production at major miners including South32, Antofagasta, and Codelco. This bullish supply backdrop helped offset market jitters stemming from the ongoing US–Iran conflict.
