Finance
Copper climbs with tight stocks, demand in focus
Published by Global Banking and Finance Review
Posted on January 21, 2026
2 min readLast updated: January 21, 2026
Quick Summary
Copper prices rose due to tight stocks and demand focus, despite geopolitical tensions and China's weakening demand. Other metals also saw price changes.
Copper climbs with tight stocks, demand in focus
Copper Market Dynamics
Jan 21 (Reuters) - Copper prices rose on Wednesday after a sharp decline in the previous session, as investors focused on tight inventories outside the U.S., even as traders questioned whether demand would be sustained.
Benchmark three-month copper on the London Metal Exchange was up 0.4% at $12,796 per metric ton as of 1700 GMT, after closing down 1.6% on Tuesday. The metal hit a record high of $13,407 one week ago.
"While the broader base metals complex remains volatile, structural tightness continues to underpin prices," Neil Welsh, head of metals at Britannia Global Markets, said in a note.
Current Price Trends
The premium of the cash LME copper contract over the three-month forward spiked to more than $100 a ton on Tuesday, indicating strong demand for near-term metal, but the spread flipped into a $23.50 a ton discount on Wednesday.
Geopolitical Influences
DOUBTS OVER WHETHER RALLY CAN ENDURE
China's Demand Impact
Dan Smith, managing director at Commodity Market Analytics, said markets were nervous about the global geopolitical situation after U.S. President Donald Trump threatened to impose tariffs on European allies opposed to his goal of gaining control of Greenland.
"I'm a bit dubious about this bounce," Smith said of copper after it rose as much as 1.6% in morning trade, adding that his algorithm was now giving him a sell signal. "It suggests any kind of strength will be short-lived."
The recent price rally has also dented demand in China, the world's biggest consumer of metals. The Yangshan copper premium, a gauge of Chinese appetite for copper imports, fell to $22 a ton, the lowest in almost 18 months.
"China macro looks pretty strong, but high copper prices tend to weaken demand if you're not careful," Smith said. China exported 96,000 tons of refined copper in December, down around one-third from November's bumper shipments but still more than five times higher than a year earlier.
Tin was the biggest gainer on the LME, adding 3.9% to $51,000 a ton as Indonesia cracks down on illegal mining, while nickel jumped 2.3% to $17,995.
Aluminium rose 0.5% to $3,124, zinc gained 0.2% to $3,178.50 and lead lost 0.2% to $2,024.
(Reporting by Tom Daly; additional reporting by Lewis Jackson and Dylan Duan; editing by Paul Simao and Barbara Lewis)
Key Takeaways
- •Copper prices rose 0.4% after a previous decline.
- •Tight inventories outside the U.S. are in focus.
- •Geopolitical tensions impact market sentiment.
- •China's demand for copper shows signs of weakening.
- •Other metals like tin and nickel also saw price changes.
Frequently Asked Questions about Copper climbs with tight stocks, demand in focus
1What is copper?
Copper is a reddish-brown metal that is highly conductive and used in electrical wiring, plumbing, and various industrial applications.
2What is the London Metal Exchange?
The London Metal Exchange (LME) is a global marketplace for trading metals, including copper, aluminum, and zinc.
3What are tight inventories?
Tight inventories refer to a situation where the supply of a commodity, like copper, is low relative to demand, often leading to higher prices.
