Shanghai copper climbs on China’s plan to expand strategic reserves

Shanghai copper climbed on Wednesday as investors reacted to China’s plan to expand its strategic reserves.

The most-active copper contract on the Shanghai Futures Exchange climbed 2.45% to 103,120 yuan ($14,864.57) a metric ton as of 0330 GMT.

The benchmark three-month copper on the London Metal Exchange, meanwhile, dipped 1.11% to $13,328.50 a ton.

China will expand its copper strategic reserves, an official at the state-backed China Nonferrous Metals Industry Association said on Tuesday, adding that it will also explore creating a commercial stockpiling system led by state-owned enterprises.

The top copper consumer will also study adding copper concentrate to its reserves, according to the official.

The red metal found support from the reserve expansion plan, with the Shanghai contract climbing as high as 105,810 yuan a ton in overnight trading, the highest since January 30 when copper’s correction began, while the London benchmark reached $13,526 on Tuesday.

State-backed research house Antaike however urged investor caution, saying that “the exploration of a commercial stockpiling mechanism and research into the feasibility of copper concentrate reserves remain preliminary ideas under discussion among relevant companies and market participants within the industry.”

in a WeChat article on Wednesday. Several traders and analysts also cautioned against over-interpreting the announcement, suggesting it may be about longer-term intention rather than any immediate plan to enter the market.

They spoke on condition of anonymity given the sensitivity of stockpiling in China.

Elsewhere, Shanghai tin concluded a three-day plunge, rising 3.91% to 387,920 yuan a ton, while London tin dipped 1.60% to $49,320, after reclaiming the $50,000 mark previously.

Nickel also climbed.

Shanghai nickel gained 2.94% to 136,570 yuan a ton, and the London benchmark nickel contract gained 0.39% to $17,515.

Both Goldman Sachs and Macquarie lifted their average 2026 nickel price forecasts to above $17,000 level on Tuesday, citing tightened supply from top producer Indonesia.

Among other SHFE base metals, aluminium climbed 1.55%, zinc dipped 0.40% and lead nudged 0.24% lower.

Elsewhere on the LME, aluminium dipped 0.08%, zinc dropped 0.28%, and lead was little changed, ticking 0.05% higher.