Copper Rebound Continues as Market Eyes China Arbitrage

(Bloomberg) — Copper extended its rebound from the lowest close in five months as orders to withdraw the metal from London Metal Exchange (LME) warehouses suggested China’s demand slump may have bottomed out.

Three-month futures rose 1.8% as of 6:04 p.m. in London, fueled in part by the biggest cancellation of LME copper since April.

The gain comes after a surge in cathode exports from China into the LME network caused copper prices to slump 19% from May’s record. China accounts for more than half of global copper consumption, and the exports, combined with weak industrial data, undercut bullishness around its demand prospects in artificial intelligence data centers.