Trafigura Group has been buying large volumes of copper to increase its sales into Asia as local supplies run low, according to Bloomberg. The buying adds to a scramble for metal that has pushed regional premiums for spot cargoes to record highs, underlining how tight physical copper supplies have become in the world's biggest copper market.

Record premiums in China

The premium Chinese buyers pay to secure imported copper has climbed above $200 a tonne, its highest level in data going back to 2017. Shanghai Metals Market said the average Yangshan copper premium rose to $210 a tonne on 6 November, repeatedly setting new records. The premium for spot copper in Shanghai jumped to 1,900 yuan a tonne, about $285, the highest since 2021. December copper in Shanghai is trading at an $880-a-tonne premium to January, the widest gap since 2022, a pattern traders call backwardation, when buyers pay more for metal delivered sooner.

Why supplies have tightened

Chinese smelters have trimmed output as costs rose, with refined copper production down 1.1% year on year in the third quarter, while inventories have fallen below typical seasonal levels. At the same time, expectations of US tariffs on refined copper have diverted hundreds of thousands of tonnes into American warehouses, leaving less metal readily available elsewhere. Copper prices rallied to record levels earlier this year, partly on that tariff-driven shift, but the rally has cooled in recent weeks as investors question how long the data-centre building boom, a major source of copper demand, can last.

[Source: Binance Square (Bloomberg)](https://www.binance.com/en/square/post/11-07-2026-trafigura-buys-copper-in-asia-as-china-faces-supply-shortage-385630875891372) | [Source: Shanghai Metals Market](https://news.metal.com/newscontent/104209609-imported-copper-premiums-continue-to-hit-record-highs-watch-for-future-ex-china-cargo-flows-back-to-china)