On April 28, copper prices declined in futures and spot markets, with LME copper inventory continuing growing and global market sentiment cautious. Refined copper spot premiums generally rose in China's major markets, due to limited spot availability and holders' intention to support prices.
China's refined copper trading, however, dropped on April 28, despite some downstream enterprises beginning to stockpiling for the upcoming Labor Day Holiday (May 1-5). Approaching the month-end, some traders reduced transactions, resulting in constrained refined copper availability.
Falling copper prices narrowed the refined-scarp copper price spread in China, suppressing copper scrap consumption. Meanwhile, downstream processors using copper scrap as raw materials had limited willingness to stockpile before the holiday, with tax policy adjustments still disrupting the scrap industry. As a result, copper scrap trading notably weakened on April 28.
Copper semis transactions in China slightly increased, amid dropping raw material prices on April 28. End-user procurement saw limited growth nearing the holiday, though a significant demand rebound remained unlikely.
Looking ahead, copper prices are expected to fluctuate at high in the short term, supported by tight raw material copper concentrate supply, Chinese smelters' upcoming concentrated maintenance, as well as firm rigid demand. Close attention is needed on global copper inventory changes as well as potential macro disruptions.
