Shanghai Spot Copper Premium Hits 1,900 Yuan as Supply Tightens

Shanghai spot copper premiums surged to 1,900 yuan a ton over futures on Wednesday, the highest level since 2021, as buyers rush for scarce physical metal. The jump reflects a tightening of supplies after Chinese smelters cut production and overseas shipments from Africa and Russia fell short. Zhou Xiaoou, an analyst at Zijin Tianfeng Futures Co., said the persistent shortage forces fabricators to buy hand to mouth. Copper prices have stayed near record highs this year after expectations that U.S. tariffs would push more refined metal into the United States, squeezing other markets. Recent weeks have seen the rally ease as worries grow over the long‑term strength of data‑center spending, a key demand driver. In the futures market, December Shanghai copper trades at an $880‑a‑ton premium to January contracts, the steepest backwardation since 2022, while the Yangshan premium for imported copper has hit all‑time highs. On the London Metal Exchange, copper futures edged up 0.2% to $14,044.50 a ton at 10:16 a.m. Singapore time. Other base‑metal futures also rose, with aluminum up 1.1% and iron ore up 1.2% to $92.75 a ton. ## Context This price pressure shows how limited domestic output and reduced imports can push spot premiums far above futures, a pattern common when major consumers face supply gaps.