On May 25, copper prices grew in China, while major overseas markets were closed for trading in observance of Memorial Day. Refined copper trading in China dropped, as rising prices dampened downstream spot demand, and spot premiums also fell across all major markets.
China's refined copper spot inventory continued growing on May 25, mainly due to weak downstream demand and limited arrivals of imported copper. According to the General Administration of Customs of China (GACC), China's refined copper imports increased slightly month on month, but exports dropped notably, reflecting the impact of Chinese smelters' concentrated maintenance and steady rigid copper demand.
Regarding raw materials, Mysteel's clean copper concentrate spot treatment charge (TC) index, CIF China stood at -$106.2/dmt last week, dropping further week on week, though the pace declined. Representatives from several major Chinese copper smelters met with government officials in Beijing on May 19, to discuss the current extremely low TCs and prepare for mid-year negotiations with global miners on the new annual long-term contract beginning in July, which may influence subsequent market sentiment.
Rising copper prices suppressed trading in China's copper semis markets, which remained dominant by procurement based on rigid end-user production needs. Entering the traditional consumption off-season, market participants were cautious about subsequent demand growth amid frequently fluctuating copper prices.
