Benchmark copper on the London Metal Exchange rose 1.2% on Thursday. Prices reached $14,408 per metric ton during the session. This rebound follows a 4% decline from record highs reached earlier this month.
Chinese buyers drove the rally by replenishing inventories during the recent price dip. The move defies the typical market reaction to the U.S. Federal Reserve’s interest rate hike on Wednesday.
A stronger U.S. dollar usually makes dollar-priced metals more expensive for holders of other currencies. However, a rising Yangshan copper premium indicates that Chinese physical demand currently outweighs the impact of central bank tightening.