Copper slips despite record European premiums

Copper slipped on Wednesday despite record premium offers for next year's physical deliveries in Europe, signalling tighter regional supplies outside the US market. Three-month copper on the London Metal Exchange fell 0.27% to $14,382 a metric ton as of 0700 GMT, while the most-traded November copper contract on the Shanghai Futures Exchange closed 0.18% higher at 109,390 yuan ($16,379.43) a ton. European copper buyers face record premiums for 2027 as concerns mount over tightening supply outside the United States. Chile's Codelco has quoted $350 per metric ton for next year's deliveries, compared with $325 in 2026, Reuters reported on Tuesday. Germany's Aurubis has also lifted its premium by about 10% to an all-time high of $347, with the announcements coinciding with the metals industry's annual LME Week gathering in London. The premiums, added to benchmark LME prices, come as tariff uncertainty continues to draw copper into the US market. Shipments have flowed towards American warehouses since Washington launched an investigation into copper imports in February 2025, leaving COMEX facilities holding roughly 70% of global exchange-visible inventories. But the Yangshan copper premium , a gauge of China's appetite for imported copper, was largely stable, despite the rise in the European market. It stood at $138 on Tuesday, up from $137 a day prior. Meanwhile, China's refined copper output rose 1.1% from a year earlier to 1.26 million tons in September, while January-September production grew 3.3% to 11.28 million tons, official data showed on Wednesday. On the monetary policy front, 94 of 100 economists polled by Reuters expect the Federal Reserve to hold rates in October, though all foresee a December increase, against fewer than half in the previous poll. Higher interest rates can constrain economic growth, hitting demand for copper. The US dollar continued to weaken, which supports commodities denominated in the greenback by making them more affordable for buyers using other currencies. Among other LME metals, aluminium gained 0.62%, zinc edged up 0.04%, lead added 0.11%, nickel advanced 2.51% and tin fell 0.28%. On the SHFE, aluminium gained 0.32%, zinc rose 0.04%, lead fell 0.09%, nickel jumped 3.05% and tin climbed 1.77%. ($1 = 6.6785 Chinese yuan renminbi)