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Copper prices eased from their recent record level as indications of weakening seasonal demand in China began to alleviate concerns about a tightening global supply outlook.

The metal, a key component in electrification and the broader energy transition, has surged this year on expectations of constrained supply.

Still, the latest data suggests near-term softness in consumption.

Prices dip after hitting all-time peak
 

Copper traded around $11,160 a ton on the London Metal Exchange (LME), slipping roughly 1.5% from the record high reached in the prior session and ending a two-day rally.

Futures on the Comex exchange in the United States also fell, reflecting a broader pullback in industrial metals.

Despite the latest decline, copper remains up about 27% on the LME this year, supported by heavy investment flows and expectations of long-term demand strength.

Traders continue to divert metal toward the US market, where prices remain higher than those in London as investors anticipate potential import duties.

Seasonal slowdown in China weighs on demand indicators
 

The retreat in prices comes amid clear signs of cooling sentiment in China, the world’s largest consumer of copper.

Analysts at Jinrui Futures Co. noted that seasonal demand from Chinese fabricators has dropped as winter approaches, leaving more metal available for export.

One key indicator of weaker appetite for imported copper is the Yangshan copper premium, which measures the extra cost traders pay to bring copper into China.

This premium has fallen to its lowest level since July, reinforcing expectations that Chinese buyers are pulling back in the short term.

The shift provides some relief to an otherwise tight supply landscape, which had been highlighted at a major copper conference in Shanghai last week.

There, delegates pointed to soaring yearly cathode premiums and reported challenging negotiations between Chinese smelters and miners over annual ore contracts.

Raw material supplies remain under pressure following a string of unplanned mine disruptions this year.

New supply offers partial relief to tight market
 

Supply-side constraints have been a central factor behind copper’s strong performance this year.

However, the market received some positive news after Ivanhoe Mines Ltd. announced the start-up of the Kamoa-Kakula copper smelter in the Democratic Republic of the Congo.

The facility, Africa’s largest, is expected to produce 500,000 tons of blister copper annually, helping to ease some of the raw material shortages facing global smelters.

Even with the additional supply, broader market concerns remain.

Traders and industry participants continue to monitor mine output, smelter operations, and potential policy changes—particularly in the US, where the prospect of import duties is already influencing trade flows.

As of 11:06 a.m. in Shanghai, copper had fallen 0.8% to $11,160 a ton on the LME.

Other industrial metals also declined, with aluminum down 0.3% and zinc registering losses as well.

With demand in China softening and supply risks evolving, the copper market is entering a period of recalibration after months of sustained bullish momentum.

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