Copper prices have bounced back as tight physical supply in China outweighs concerns about weaker global growth and uncertainty over AI-linked demand.
The latest move follows a volatile session for base metals, with copper recovering as traders focused on constrained concentrate availability and reduced smelter output.
The supply backdrop remains supportive.
Chinese smelters have been under pressure from negative treatment charges, while recent import data has shown weaker concentrate availability.
That is keeping the physical market tight even as investors debate the strength of demand from construction, manufacturing and data centres.
For Australian producers and developers, the combination of elevated prices and constrained supply remains constructive.
The broader issue is that new copper supply takes years to develop, meaning short-term shortages can quickly tighten the market.
That dynamic keeps copper among the strongest long-term stories in the resources sector despite ongoing price volatility.
