On May 29, copper prices mildly rebounded in futures and spot markets, with overall sentiment notably influenced by developments of the negotiation between the U.S. and Iran on Middle East conflicts.
Mysteel's clean copper concentrate treatment charge (TC) index stood at -$107.2/dmt as of May 29, continuing declining but with a slower pace. Market participants have been focusing on the mid-year negotiation between major mines and smelters, with severe supply-demand contradiction likely to persist.
Refined copper trading in China fell on May 29, as rebounding prices limited downstream procurement and increased market caution. At the month-end, some traders were constrained by tight invoice quota and reduced sales, also dampening spot transactions. Spot premiums generally grew in China's major markets, except for Guangdong where some holders cut prices to facilitate sales.
Trading in China's copper semis markets also dropped on May 29, due to rising prices and limited spot demand. Enterprises reported that transactions were mainly supported by previous orders and rigid demand, as end-user demand growth stayed sluggish.
Moving forward, though China's refined copper spot inventory slightly increased, June may see mild inventory declines, due to continuous maintenance impact, limited import arrivals, and weak spot consumption.
