- Chinese copper imports rise amid strong demand
- HCL restarts Kendadih mine to boost supply
Benchmark copper prices on the London Metal Exchange (LME) traded in a relatively narrow range this week, fluctuating between $13,500/t and $13,700/t and settling at approximately $13,600/t. The market spent this week digesting May’s rally rather than reversing it. The inability of bears to push prices below the $13,500/t reflects exchange inventories fell sharply, with LME copper stocks declining by more than 7% to their lowest level in over a month.
The drawdown in inventories reinforced concerns over tightening physical availability and supported gains in nearby copper contracts, reflecting strong demand for prompt metal.
Additional support came from expectations of robust demand from China’s power and manufacturing sectors, while market participants continued to monitor global supply conditions. However, gains were moderated by cautious sentiment surrounding broader macroeconomic developments and uncertainty over the global economic outlook. Overall, copper prices remained well supported by tightening inventories and resilient underlying demand fundamentals.
Nevertheless, downside pressure was partially offset by ongoing expectations that the United States may introduce tariffs on imported copper in the coming years, supporting physical market sentiment and reinforcing expectations of tighter regional supply balances.
Overall, copper prices remained relatively stable during the week, supported by structural supply constraints, tariff-related market positioning, and resilient long-term demand expectations, although macroeconomic headwinds and profit-taking activity limited further upside momentum.
Global updates
Strong refined copper imports in China
China’s refined copper imports continued to strengthen in May, rising 4.4% year-on-year to 446,600 t and recording the strongest annual growth since August 2025. The increase highlights resilient demand from key end-use sectors despite elevated copper prices and near-record domestic production levels. China continues to account for the majority of global copper demand, reinforcing its importance to the global copper market.
Meanwhile, China’s refined copper production remained near record highs as smelters maintained elevated operating rates despite ongoing pressure from tight concentrate supplies. Imports of copper ore and concentrate declined by 1% year-on-year to 2.36 million t in May, reflecting continued constraints in the global raw materials market.
India’s update
Hindustan Copper Ltd. (HCL) has restarted the Kendadih copper mine in Jharkhand after nearly 25 years, with a target ore production of 225,000 tpa. The company has also expanded the Indian Copper Complex concentrator capacity from 0.4 MTPA to 0.9 MTPA to support higher processing volumes. HCL plans to increase ore production at the Surda mine from 400,000 tpa to 900,000 tpa, strengthening domestic copper supply. The initiative forms a key part of the company’s Vision 2030 strategy and India’s resource security objectives.
Outlook
Copper’s outlook remains constructive, supported by improving global risk sentiment following signs of a potential peace agreement between the United States and Iran. Reduced geopolitical tensions could support industrial activity and strengthen demand expectations for copper, benefiting major producers such as Teck Resources, First Quantum Minerals, Lundin Mining, and Capstone Copper.
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