On May 15, copper prices dropped notably in futures and spot markets, primarily due to the continuously rising U.S. dollar index. China's refined copper spot premiums generally dropped in major markets as downstream procurement stayed mediocre, except for Guangdong, which saw strong premiums on tight local supply.
Regarding raw materials, Mysteel's clean copper concentrate spot treatment charge (TC) index, CIF China stood at -$103.62/dmt last week, dropping significantly week on week and indicating severe supply-demand imbalance, as disruptions intensified in the global mining sector. As for copper scrap, falling prices on May 15 tightened supply, but downstream processors saw scrap inventory generally rise last week.
Trading in China's refined copper and copper semis markets rebounded slightly on May 15, supported by rigid demand releases during price declines and manufacturers' stockpiling ahead of the weekend.
Looking ahead, market participants in China are generally pessimistic on further growth in copper prices in the short term, likely leading to cautious procurement based on rigid demand. However, the supply side will continue providing price support, as the second quarter is Chinese smelters' concentrate maintenance season and sulfuric acid shortages may disrupt overseas SX-EW copper production.
