Copper prices extended their winning streak on Friday, climbing for a fourth consecutive session as resilient Chinese demand, tight scrap supply and declining London Metal Exchange inventories pushed the industrial metal back towards its record high.
Three-month copper on the London Metal Exchange rose 0.2 percent to $14,521 a metric tonne, after touching $14,572.50, its highest level since September 10. The metal gained about 2 percent over the week, leaving it within sight of its record peak of $14,875.
China remains the central demand variable for the global copper market, and recent indicators point to continued physical consumption.
The Yangshan copper premium, a closely watched gauge of China’s appetite for imported copper, has risen 72 percent so far this month to $124 a ton, its highest level in nearly four years.
The increase in the premium indicates that Chinese buyers are paying more to secure imported metal, reinforcing signs of tightness in the physical market.
The yuan’s appreciation has also improved the purchasing economics for Chinese buyers of dollar-denominated commodities. The Chinese currency ended Friday at its strongest level against the US dollar since mid-2022, making copper priced in dollars relatively cheaper for domestic consumers.
Market participants are now also looking ahead to the forthcoming meeting between US President Donald Trump and Chinese President Xi Jinping, with trade relations remaining an important variable for metals demand and supply chains.
Supply constraints are providing another pillar of support for copper.
Goldman Sachs said domestic copper scrap availability in China remained tight, contributing to further delays in the return of smelting capacity from maintenance.
The combination of firm consumption and constrained raw-material availability is tightening the balance between copper supply and demand, leaving buyers more exposed to price increases.
Warehouse data are reinforcing the tightening narrative.
Available copper stocks in LME-registered warehouses fell to 139,650 tonnes, with 4,500 tonnes of fresh cancellations recorded in Asia, mainly in Taiwan and Hong Kong.
Cancellations are metal earmarked for withdrawal from exchange warehouses and can provide an indication of future physical demand, although they do not necessarily translate immediately into consumption.
The decline in LME availability contrasts with developments in China.
Copper inventories monitored by the Shanghai Futures Exchange rose 2.4 percent during the week to 56,073 tonnes, ending a three-week run of declines.
The US market presents a different picture.
COMEX copper inventories remained broadly stable at 696,631 tons during the week, while the premium of US copper futures over LME copper narrowed.
That reduction in the price incentive has weakened the economics of shipping physical copper into the United States.
The market is also waiting for the White House to decide on tariffs on refined copper, leaving traders uncertain about how future US trade policy could reshape global flows.
If tariff-related incentives change the relative prices between US and international markets, copper could be redirected between regions, potentially altering exchange inventories and regional premiums.
The strength in copper was accompanied by mixed trading across other industrial metals.
LME zinc rose 1.3 percent to $3,932 a tonne, while tin gained 0.6 percent to $53,505. Lead was steady at $1,910.
Aluminium slipped 0.1 percent to $3,297, while nickel fell 0.4 percent to $16,230.
