Yangshan Copper Premium Reaches Record $200 per Ton as Chinese Importers Face Supply Scarcity

Chinese buyers are paying record premiums to secure physical copper as inventories tighten globally. Mysteel Global analyst Xiao Chuankang stated the metal is sold out everywhere, with the premium likely to stay elevated due to physical scarcity. This follows years of mining underinvestment and rising demand from AI data centers and power infrastructure, pushing London prices toward $15,000 per ton.

Deglobalization incentives and pre-tariff US stockpiling have diverted metal away from traditional flows. China remains the largest consumer, yet its importers now bid aggressively against strategic reserves elsewhere. The two-sided ledger shows Beijing gains short-term supply security at higher cost while Washington secures buffer stocks that raise global prices and tighten availability for all other buyers.

Primary records from the London Metal Exchange and China customs data confirm the divergence between paper benchmarks and physical delivery premia. Saxo Bank strategy head Ole Hansen notes prices may have peaked near-term if AI-related demand corrects, yet projects a 10 percent gain over the next year amid ongoing volatility.

Next moves hinge on whether US tariff implementation accelerates further stockpiling or if Chinese smelter output offsets the squeeze. Sustained premiums above $150 per ton would signal structural supply constraints rather than temporary trading pressure.