On April 30, copper prices declined slightly in futures and spot markets, with China's refined copper spot premiums generally falling in major markets, as transactions weakened in the last trading day before the May Day holiday (May 1-5). During the holiday, the Shanghai Futures Exchange (SHFE) was closed, and most market participants in China suspended trading, waiting for the reopen.
London Metal Exchange (LME) copper prices fell initially and rebounded later during the holiday, experiencing limited fluctuations, with inventory slightly declining. Geopolitical tensions in the Middle East recurred, heightening inflationary pressures and suppressing copper prices. However, as the situation eased, copper prices regained some losses.
Mysteel's clean copper concentrate spot treatment charge (TC) index stood at -$86.33/dmt in the week ending April 30, dropping further from the extremely low level and indicating persistently tight supply, with limited spot transactions seen recently.
Moving forward, close attention is needed on China's copper demand recovery post-holiday, which may support prices from the fundamental side. Meanwhile, the direct impact of macro disruptions may diminish in the short term.
