Copper tightened sharply this week as China's import premium hit a near 13-year high, a sign of strong appetite for imported metal in the world's largest copper consumer. The Yangshan copper premium, the gauge of that appetite, reached $188 a tonne on Tuesday 27 October 2026, its highest since 2014.

Benchmark three-month copper on the London Metal Exchange rose 1.1% on Tuesday to $14,487.50 a tonne, touching a session high of $14,490.50, its strongest since 16 October. Cash copper traded at a $199.50 a tonne premium over the three-month forward, after reaching $206, the most since 27 August, a pattern known as backwardation that signals near-term tightness.

Stocks tell a split story

Stocks of copper on the Shanghai Futures Exchange have fallen by more than 25%, while London stocks have risen but are heavily concentrated in North America, leaving availability outside the United States tight. ING strategist Ewa Manthey said the tightness should put a floor under prices, but warned that price-sensitive buyers may resist at current levels.

The Yangshan premium is watched because it measures what buyers in China, the world's biggest copper consumer, are willing to pay above London prices for imported metal. When it rises to multi-year highs, it signals that domestic supply is tight relative to demand from manufacturers, grid builders and other industrial users.

Sources: Kitco, citing Reuters and ING Think.