Copper prices are gaining support from tightening physical supply conditions in China, driven by scrap shortages, smelter maintenance outages, and low inventories, FX Street reported. These factors are contributing to a constrained market environment, underpinning prices amid ongoing demand.
Import premiums at Yangshan have surged as a result of these scrap shortages and maintenance activities, further indicating supply tightness in the Chinese market. Additionally, inventories held both in China and on the London Metal Exchange (LME) remain at low levels, reinforcing the bullish supply backdrop.
For Japanese investors and traders, these developments suggest continued volatility and potential upward pressure on copper prices, which could influence related sectors and commodities trading strategies in the region.