Key points

  • Benchmark three-month copper on the London Metal Exchange rose 0.31% to $13,939 a metric ton, Business Recorder reported.
  • China's October copper concentrate imports fell 11% compared to the previous year, according to customs data cited by Business Recorder.
  • The Yangshan premium climbed to a record $230 a ton on Monday, reflecting high demand for imported copper in China, as reported by Business Recorder.

Global financial markets received a boost as a technology stock rebound caught short-sellers by surprise and easing oil prices improved overall risk appetite, according to Business Recorder.

Key Details

Benchmark three-month copper on the London Metal Exchange traded at $13,939 a metric ton following a 0.31% increase, Business Recorder reported. The most-traded copper contract on the Shanghai Futures Exchange edged up 0.14% to 107,700 yuan ($16,140) a ton. Meanwhile, the cash-to-three-month spread on the London Metal Exchange registered $175.39 a ton backwardation, which indicates tight nearby availability, according to research by Metal Intelligence Centre head Sandeep Daga cited by Business Recorder. ANZ senior commodity strategist Daniel Hynes stated, as reported by Business Recorder, that expectations of de-escalation in the Middle East conflict drove oil prices lower and improved market risk appetite.

Context and Impact

Buyers in China faced record premiums and shortages in both copper concentrate and refined copper stocks, according to Business Recorder. Customs data showed that China's October copper concentrate imports dropped 11% year-on-year because smelters faced deep negative treatment charges and falling sulfuric acid prices. Additionally, warehouse inventories monitored by the Shanghai Futures Exchange stood at 33,848 tons on Friday, while the Yangshan premium reached a new record of $230 a ton on Monday, Business Recorder reported.

Summary and What Next

Markets responded positively to the broader Wall Street stock rally and easing oil prices following the post-midterm election technology selloff. Further developments depend on supply tightness in China and ongoing shifts in global commodity demand.