Copper Shortage in China: Red Metal Surges as Buyers Prepare to Pay Any Price
Tension in the global copper market due to rising premiums for Chinese importers and supply shortages
Translated by Qiyas from الأنباء — Original source
Global copper markets are witnessing escalating tension as competition for supplies intensifies, after premiums paid by Chinese buyers surged to record highs, signaling growing scarcity of available supply in the world’s largest consumer of the red metal.
According to a Bloomberg report, Chinese copper importers are paying more than $200 per ton above global benchmark prices to secure immediate shipments, marking the highest level recorded since data collection began. This surge is driven by strong demand from factories and manufacturing firms that rely on the base metal for energy, infrastructure, electric vehicles, and electronics.
The roots of the current crisis lie in an unusual shift in global trade flows. Fears of U.S. tariffs on copper imports prompted traders to ship hundreds of thousands of tons to the United States over recent months.
As a result, large volumes of inventory have accumulated in the U.S. market, while buyers in China have faced relative shortages of available supplies.
Pressure has further intensified as Chinese copper smelting output declined, with production falling by approximately 1.1% in the third quarter, deepening the supply-demand gap in the domestic market.
This comes as China continues to boost its investments in power grids, renewable energy projects, and industries linked to the green transition—sectors that are heavily dependent on copper.
The red metal continued its upward trajectory, reaching around $14,472 per ton, up approximately 16% since the beginning of the year, supported by hopes of sustained strong global demand and concerns about limited future supplies.
