On May 19, copper prices continued falling at the London Metal Exchange (LME), but rebounded slightly in China's futures and spot markets. In terms of inventory, recent LME copper inventory has been at record highs, while the Shanghai Futures Exchange copper inventory has returned to a relatively normal level from a surge in early 2026, with overseas inventory pressure on copper prices higher than in China.
China's refined copper spot premiums generally dropped at major markets, except for Guangdong where tight local supply supported prices. Meanwhile, refined copper trading dropped in China, as downstream spot procurement remained highly sensitive to price fluctuations under mediocre demand.
Trading in China's copper semis markets also weakened on May 19, as market participants stayed cautious under frequent price fluctuations. Some focused on closing and pricing previous orders, while others kept purchasing based on rigid demand, instead of stockpiling copper raw materials. Additionally, copper semis producers using scrap as raw materials have been facing production and sales pressures, due to limited scrap supply and high costs from tax policy adjustments. Overall, copper demand in China remained mediocre, with risks of weakening entering the traditional off-season.
Despite steady rigid demand in China, the supply side will continue providing strong support for copper prices moving forward. Meanwhile, macroeconomic disruptions also need close attention, which may lead to rapid short-term price fluctuations.
