The premium for Chinese buyers to import copper above London Metal Exchange prices reached $200 a ton. The Yangshan index hit its highest since 2017, reflecting sharply increased competition for available supplies of the metal. The situation worsens due to a lack of supplies. The fear of new import tariffs in the United States is pushing market participants to direct copper to American storage facilities. Against this background, Chinese importers need to offer a higher premium to attract metal shipments to their market. The pressure is increased by the depletion of stocks and a decrease in copper production in China itself. As domestic capacity to meet demand is reduced, dependence on foreign supplies increases and competition for any available shipment becomes more expensive. The nine-year record premium shows changes in trade flows even before the possible introduction of new tariffs. The mere expectation of restrictions is enough for the metal to move towards the United States, and the purchase conditions for China become stricter.

The premium for Chinese buyers to import copper above London Metal Exchange prices reached $200 a ton. The Yangshan index hit its highest since 2017, reflecting sharply increased competition for available supplies of the metal. The situation worsens due to a lack of supplies. The fear of new import tariffs in the United States is pushing market participants to direct copper to American storage facilities. Against this background, Chinese importers need to offer a higher premium to attract metal shipments to their market. The pressure is increased by the depletion of stocks and a decrease in copper production in China itself. As domestic capacity to meet demand is reduced, dependence on foreign supplies increases and competition for any available shipment becomes more expensive. The nine-year record premium shows changes in trade flows even before the possible introduction of new tariffs. The mere expectation of restrictions is enough for the metal to move towards the United States, and the purchase conditions for China become stricter.