On May 13, copper prices continued rising in futures and spot markets, primarily supported by copper concentrate supply concerns, as recent disruptions on the mining sector stayed frequent.
China's refined copper spot trading slightly fell, due to rising prices and the approaching contract rollover tightening spot supply. Most major markets in China saw falling spot premiums, except for Guangdong, where premiums rose further as smelter maintenance notably constrained local supply. Some traders began shipping refined copper from Shanghai to Guangdong as the cross-regional price spread widened, though with limited volume.
The refined-scrap copper price spread significantly widened on May 13, but daily scrap trading fell in China, due to restrictions such as industry tax policy adjustments and limited invoice quota. Meanwhile, high prices also suppressed downstream copper scrap processors' profits, resulting in only rigid-demand purchases for raw materials.
China's copper semis markets saw sluggish transactions on May 13, with end-user consumption dampened by continuously increasing raw material prices. The copper bar market even saw orders canceled or renegotiated on prices, reflecting low acceptance of elevated price levels.
Moving forward, though copper prices are expected to remain supported by raw material supply tightness, close attention is needed on potentially weakening consumption under elevated prices and the upcoming off-season in China.
