Copper spent the week caught between a tight physical market and softening demand narratives.
Early in the window, researchers highlighted that copper was outperforming a broader metals selloff thanks to genuine scarcity: the LME cash-to-3M backwardation sat near $174/t, the Yangshan premium pushed above $200/t, and Chilean mine output hit a two-decade quarterly low. The structural bull case — electrification, grid build-out, AI infrastructure — was described as intact.
By midweek the tone softened. Analysts flagged prices slipping 2.8% in Asian trade toward $6.38, pressured by equity weakness, fresh doubts over AI and data-centre demand, and a weaker yuan after the PBOC curbed appreciation. A Trump election defeat was also seen as reducing the odds of US refined copper tariffs, which could release stockpiled US inventories back into global channels and relieve Chinese premiums.
Late-week commentary framed the setup as a standoff: near-term physical tightness remains real, but demand expectations are being quietly marked down.