Copper Steadies at 6.71753 as Tight Supply and AI Rebound Offset Firmer Dollar and Costly Oil

Aditi Sarkar

28 October 2026 06:37 PM AEDT

Copper Steadies at 6.71753 as Tight Supply and AI Rebound Offset Firmer Dollar and Costly Oil

Image Source: Shutterstock

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Highlights

Copper traded at 6.71753, down 0.01175 (-0.17%), during the session.
The session opened at 6.72003 and reached a high of 6.73603.
Copper touched a session low of 6.70803 on tick volume of 13.04K.
LME three-month copper rose 0.7% to USD 14,421.50 per tonne on 27 October.
The Yangshan premium hit a nearly 13-year high of USD 178 per tonne, a gauge of China's import appetite.
Traders are watching support near 6.60 and 6.40 and resistance near 6.80 and 6.90.

Copper edged 0.17% lower to 6.71753 on 28 October 2026, pausing after a rebound as tight physical supply and AI-linked demand competed with a firmer dollar and higher oil prices. The session opened at 6.72003 and ranged between 6.70803 and 6.73603, shedding 0.01175.

The pause follows a stronger session for LME copper and leaves the metal near the upper end of its recent range.

Copper Pauses After a Firmer Session

Copper opened at 6.72003, touched a high of 6.73603 and dipped to 6.70803, leaving the latest price at 6.71753 on tick volume of 13.04K. On 27 October, LME three-month copper rose 0.7% to USD 14,421.50 per tonne as of 10:30 GMT.

TradingView chart for Copper

Image source: Tradingview chart, 28 October 2026

Tight Supply and Rising Premiums

The Yangshan premium hit a nearly 13-year high of USD 178 per tonne on Monday, while the cash LME contract traded at a USD 206 premium to the three-month contract, the widest since 27 August. Shanghai Futures Exchange copper stocks fell more than 25% last week to 54,356 tonnes as smelter maintenance reduced availability.

Mine supply is also under pressure. BHP's quarterly copper output fell 19% to 400,700 tonnes after disruptions in Chile and Australia, and a strike at Antofagasta's Centinela mine is expected to weigh on output from November.

AI Rebound Supports Demand, but Buyers Push Back

Rebounding AI stocks supported prices, with analysts expecting demand to benefit from AI infrastructure build-out, while electrification and grid investment add to the demand case. Analysts warned that price-sensitive buyers could push back at current levels, and Chinese refined copper imports were down about 11% year to date.

Dollar, Oil and Exchange Stocks Cap Gains

A firmer dollar and higher oil prices capped gains. LME inventories rose last week to 245,275 tonnes on 21 October, but they are concentrated in North America, leaving ex-US availability tight. LME copper's record of USD 14,858 per tonne, set on 9 September, remains above current levels.

The Fed decision at 14:00 ET today, expected to be a hold at 3.75%-4.00%, and 29 October PCE inflation data are next.

Technical Outlook: Copper

Copper was quoted at 6.71753, against an opening level of 6.72003, a session high of 6.73603 and a session low of 6.70803. The change on the day stood at -0.01175, or -0.17%.

Copper has traded in a range of roughly 6.40 to 6.95 since August, with a peak near 6.95 in September and a dip toward 6.44 in October. The latest reading sits in the upper half of that range after a rebound from the October low. A sustained move through the September peak or below the October low would be needed before the range could be considered broken.

Key Levels to Watch

The nearest support zone sits near 6.60, followed by the area near 6.40, close to the October low. Resistance sits near 6.80, followed by the area near 6.90, close to the September peak. These are approximate levels rather than calculated pivots.

A hold above 6.60 would keep the recent rebound intact, while a slip below it would bring 6.40 into view. A sustained move through 6.80 would be needed before 6.90 becomes relevant.

Summary

Copper eased 0.17% to 6.71753 on 28 October 2026 as a firmer dollar and higher oil prices offset tight supply, record-level import premiums in China and AI-linked demand. The Fed decision today and 29 October PCE data are next, with support near 6.60 and resistance near 6.80 framing the near-term range.

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