Shanghai Copper Extends Decline on Profit-Taking, Soft China Demand
Shanghai copper prices slipped for a third consecutive session on Monday, as profit-taking and signs of weakening demand in China weighed on market sentiment, despite gains in London prices.
The most-traded copper contract on the Shanghai Futures Exchange (SHFE) fell 0.37% to 101,490 yuan ($14,574.15) per metric ton by 0310 GMT.
In contrast, benchmark three-month copper on the London Metal Exchange (LME) rebounded, rising 1.16% to $12,951 per ton, snapping a two-session losing streak.
Market participants said profit-booking pressure remained evident in Shanghai, while sluggish downstream demand continued to cap prices. The Yangshan copper premium, a key indicator of China’s appetite for imported copper, fell to $32 per ton on Friday, signalling muted demand following the recent record-setting rally in the red metal.
Adding to the pressure, copper inventories in SHFE-monitored warehouses increased for a sixth straight week, reflecting subdued spot buying interest amid elevated prices. Deliverable copper stocks rose 18.3% week-on-week to 213,515 tons, and have surged 138.86% from 89,389 tons since December 8, according to SHFE data.
Despite near-term weakness, copper prices continued to find some support from mine disruptions and concerns that refined copper supply could tighten due to regional market dislocations outside the United States, particularly amid ongoing tariff-related uncertainties.
Inventories in U.S. COMEX warehouses have also been rising, reaching 542,914 short tons (492,523.3 metric tons) on Friday, approaching the half-million-ton mark.
On the macroeconomic front, official data showed China’s economic growth slowed to 4.5% year-on-year in the fourth quarter, marking a three-year low. However, the economy expanded 5.0% for the full year 2025, meeting Beijing’s official growth target despite persistent trade tensions and weak domestic demand.
Across other SHFE base metals, aluminium slipped 0.37%, zinc fell 1.83%, lead dropped 2.27%, nickel declined 1.17%, and tin plunged 5.22%.
Meanwhile, in the LME complex, aluminium rose 0.73%, zinc gained 0.73%, lead added 0.32%, nickel advanced 2.54%, and tin climbed 2.80%.
