Chinese Demand for Copper Vanishes After Prices Hit Record

Group 1 - A significant decline in Chinese copper demand has occurred following a sharp price increase, with copper prices on the London Metal Exchange surpassing $13,000 per ton, marking a nearly 50% rise over the past year [2][3] - Industrial users in China, which account for half of global copper demand, are reducing purchases due to the inability to pass on higher costs to factories, leading to increased inventories [4][5] - A survey indicated that around 60% of firms producing copper rod for electricity transmission have cut or halted production due to rising costs, reflecting a quiet market compared to previous years [5][6] Group 2 - The processing fees for refined copper into rod have dropped to zero, the lowest level for this time of year, indicating subdued market activity [6] - Operating rates among fabricators have remained at multi-year lows, even during peak demand seasons, highlighting the ongoing challenges in the market [6]