Copper traded just below $5.9 per pound on Wednesday after rising for three straight sessions, supported by opportunistic dip-buying from Chinese fabricators taking advantage of lower prices. Spot premiums have been climbing in China as the recent drop in prices triggered a wave of downstream procurement from the construction and renewable energy sectors. Market participants also focused on mounting midstream pressure, with annual copper smelting refining charges plunging to $0 per ton in 2026, signaling a severe global shortage of copper concentrate that threatens refined output. While record-high exchange inventories in Shanghai initially capped gains, the narrative of long-term structural deficits tied to AI data centers and rising defense spending continues to underpin the red metal. Separately, workers at Glencore’s Australian copper refinery threatened to strike after failing to reach an agreement in a pay dispute.
