Strong demand overlaid with tightening supply, China's spot copper premium jumps to a 16-month high.

As buyers scramble to secure supply, an indicator measuring the strength of demand in the Chinese copper market has surged to its highest level since the end of 2023. According to data from the research firm Shanghai Metal Market, the Yangshan copper premium has jumped from a low of $35 per ton at the end of February to $93 per ton on Monday. Reportedly, the Yangshan copper premium refers to the price difference between spot copper prices at Yangshan Port and LME 3-month copper prices, indirectly reflecting the supply and demand situation of copper in China. On one hand, Chinese traders report strong domestic demand, with domestic copper inventories plummeting in recent weeks. On the other hand, threats from the U.S. government to impose specific tariffs on imported copper have prompted a large influx of copper into the U.S. before potential tariffs take effect, tightening global copper supply and fueling competition among buyers for copper supply. Since U.S. President Trump announced widespread imposition of so-called "reciprocal tariffs," widespread market volatility has caused LME copper prices to plummet to their lowest level in a year, but have since rebounded. As of writing, LME copper prices were holding steady at $9,369 per ton.