2026.08.0303:40:58UTC+00Copper Gains on Tightening Supply

Copper futures advanced toward $6.50 per pound on Monday, hitting a two-week high as persistent supply constraints continued to tighten market conditions. Analysts pointed to shortages of copper concentrate and scrap in China, the world’s largest consumer, which have pushed treatment charges and market spreads higher.

Market participants also remained wary of potential new US tariffs on copper, a risk that has prompted a diversion of shipments toward the American market. At the same time, prices continued to draw structural support from copper’s strong long-term demand outlook, underpinned by the global transition to clean energy and the rapid build-out of artificial intelligence data centers.

On the macro front, private-sector data showed that China’s manufacturing activity slowed to a four-month low in July, with both output and new orders expanding at a weaker pace, clouding the demand outlook. Adding to the cautious tone, the Politburo signaled last week that it would stick with existing policy tools rather than introduce broad-based stimulus measures.