On May 22, copper prices slightly grew in futures markets, but dropped in China's spot market, with refined copper spot premiums generally falling in China's major markets.
China's refined copper spot trading increased on May 22, due to falling spot prices and downstream stockpiling before the weekend. However, copper scrap transactions fell notably day on day, as fluctuating prices triggered holders' caution and finished product inventory at downstream scrap processors were relatively high.
Trading in China's copper semis markets rose on May 22, but remained generally mediocre. Copper semis producers stayed cautious about raw material procurement amid volatile copper prices, while production and sale were also constrained by mediocre end-use consumption. The current consumption off-season in China's copper industry and elevated copper prices suppressed spot demand. However, steady growth in the power grid and artificial intelligence sectors will continue to sustain strong demand expectations.
Moving forward, copper prices will face growing uncertainties due to the unclear Fed interest rate decision and persisting geopolitical risks at the Middle East. Regarding the fundamentals, copper concentrate supply concerns and long-term demand expectations will continue to provide price support.
