On May 12, copper prices notably grew in futures and spot markets, as supply-side concerns intensified. Following the price rise, China's refined copper trading declined, while spot premiums also fell due to cautious downstream procurement.
The Peruvian government approved an emergency decree on May 11, local time, allowing exceptional measures aimed at preventing a potential national energy crisis and guaranteeing fuel supplies across the country, which is expected to remain effective until December 31, 2026. As stable power supply is critically important to copper production, and Peru is one of the world's major copper-producing countries, the regulation further heightened global concerns over copper supply disruptions, driving a rapid increase in copper prices.
Regarding copper scrap trading in China, rising prices boosted holders' profits and thus increased spot supply, with raw material availability growing for copper anode smelters and downstream copper scrap processors. China's copper semis markets saw sluggish transactions on May 12, primarily suppressed by rebounding raw material prices, with end-user consumption generally expected to moderate due to the upcoming demand off-season.
Despite relatively high global refined copper inventories, the raw material side has been experiencing disruptions and supporting copper prices recently. With supportive fundamentals and easing macro pressures, copper prices are likely to stay elevated in the short term.
