On May 11, copper prices grew in futures and spot markets, despite worsening disagreements between the U.S. and Iran regarding the Middle East conflicts. Currently, raw material supply concerns strongly support copper prices, but attention is also needed on weakening demand amid China's upcoming off-season and elevated prices.
Trading in China's refined copper market fell on May 11, suppressed by rising prices. However, holders had limited willingness to lower prices, leading to slightly dropping spot premiums across major markets in China. China's refined copper spot inventory returned to decreases on May 11, according to Mysteel's survey. Despite a slight inventory increase after the May Day holiday, smelters' deliveries stayed constrained due to concentrated maintenance, again resulting in falling inventory.
China's copper semis markets saw generally weakening transactions on May 11, caused by rising prices and the approaching demand off-season. Though secondary copper rod orders slightly grew as the refined-secondary copper rod price spread widened, consumption in other copper semis sectors stayed weak, with demand expected to fall.
Going forward, copper demand in China is expected to be supported by long-term rigid demand from end-users, with notable increases in spot consumption unlikely.
