An important market indicator of copper demand in China surged by 38% on Wednesday, reflecting shifting trade flows and heightened buying activity after the United States announced new import tariffs on copper.
The Yangshan copper premium, a gauge of China’s copper import appetite, climbed to $40 per metric ton—up from Tuesday’s 11-month low of $29—following U.S. President Donald Trump’s proposed 50% import tariff on copper, expected to take effect by August 1.
This sudden premium spike suggests strong demand in China and a likely redirection of global copper flows. With only cargoes currently en route or sourced from nearby regions expected to arrive in the U.S. before the tariff deadline, traders anticipate excess copper will instead be rerouted toward London Metal Exchange (LME) warehouses.
“The expected softness in LME pricing is creating an arbitrage opportunity that’s strengthening Chinese import premiums,” said Anant Jatia, founder of Greenland Investment Management, a hedge fund focused on commodities.
As of Wednesday, the LME benchmark copper price had fallen 1.5%, sitting at $9,645 per metric ton.
Adding to the dynamic is ongoing uncertainty about future U.S. copper scrap exports. While the U.S. remains the top source of copper scrap for China, Chinese buyers have gradually reduced imports since last November’s U.S. election results, signaling cautious procurement strategies.
The latest developments underline how trade policy shifts are actively reshaping global metal supply chains and pricing behavior.
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