On May 28, copper prices fell in China's futures and spot markets, but increased at the London Metal Exchange (LME). Overseas copper prices were boosted by the prospect of a potential ceasefire agreement between the U.S. and Iran. Additionally, as the end-of-June deadline approaches for the U.S. government's decision on whether to impose tariffs on refined copper imports, the COMEX-LME price spread has recently been gradually widening.
Refined copper trading in China rebounded on May 28, as falling prices supported downstream purchases for raw materials. Spot premiums also generally declined in China's major markets, suppressed by downstream rigid-demand consumption.
China's refined copper spot inventory continued increasing week on week as of May 28, but dropped slightly within this week, as import inflows of refined copper declined. However, downstream spot copper procurement stayed weak, sustaining the inventory build-up week on week.
Trading in China's copper semis markets slightly diverged on May 28, with copper rod and copper plate/strip orders growing, supported by relatively firm end-use demand from sectors such as power grid and new energy, while copper tube and copper bar markets saw persistently weak consumption.
Moving forward, copper prices are expected to continue fluctuating within a wide range in the short term, likely heavily shaped by macro factors yet supported by tightness at the supply side.
