2026.11.0505:01:49UTC+00Copper Finds Support Amid Tightening Supply in China

Copper futures held near $6.40 per pound on Thursday, supported by robust physical demand from China, the world's largest copper consumer, as buyers vied for limited supply and spot premiums continued to rise. Industry data showed Shanghai's spot copper premium climbing to 1,900 yuan per ton above futures prices on Wednesday, its highest level since 2021.

The sharp increase reflects production cuts by Chinese smelters, driven by higher ore costs and falling byproduct prices that are putting margins under pressure and risking substantial losses. Tightness has been exacerbated by reduced imports from overseas suppliers, particularly in Africa and Russia.

Despite these supportive fundamentals, copper prices are still lower on the week, weighed down by a broader selloff in artificial intelligence–related stocks and worries that potential Democratic control of the US Congress could curb future data-center investment. As a core material in the global buildout of AI, copper plays a critical role in data centers, power grids, and wider electrical infrastructure.