On May 8, copper prices grew in futures markets but slightly declined in China's spot market. Spot premiums declined in most markets except for Guangdong, as holders actively lowered prices to promote sales amid mediocre spot demand.
PT Freeport Indonesia stated last Thursday that the full resumption of production at its Grasberg copper mine is expected at early 2028, according to market sources, delayed from the previous expectation at the end of 2027 announced in the company's first-quarter report. The news further worsened global concerns on copper concentrate supply tightness and provided support for copper prices. The clean copper concentrate spot treatment charge (TC) index, CIF China stood at -$93.7/dmt last week, dropping further week on week.
China's refined copper trading increased on May 8 due to stockpiling before the weekend and falling spot premiums. Regarding downstream copper semis markets, transactions were generally mediocre. Refined copper rod orders only grew during low prices early in the morning, and copper plate/strip new orders were also limited. Copper tube and copper bar demand was suppressed by high prices and insufficient end-user consumption, while secondary copper rod trading remained constrained by raw material copper scrap issues.
Moving forward, supply-side concerns are expected to continue supporting copper prices, with macroeconomic factors such as the U.S. Fed's interest rate decision, global inflation, and geopolitical conflicts also needing close attention.
