On June 3, copper prices continued growing in China's spot and futures markets, while dropped at the LME. Continued mutual strikes between the U.S. and Iran in the Middle East, coupled with the slow progress of U.S.-Iran negotiations, weakened market risk appetite and led to a decline in overseas copper prices.
Increasing copper prices in China dampened spot trading, with spot premiums also generally dropping across major markets. Regrading copper scrap, continuously rising copper prices widened the refined-scrap copper price spread and guaranteed profits for upstream copper scrap holders, leading to easing scrap supply and recovering transactions.
Trading in China's copper semis markets remained mediocre, though refined copper rod orders slightly grew as some end-users were bullish about future prices. Frequently fluctuating copper prices raised market caution, with end-users generally purchased based on rigid demand and focused on long-term contract deliveries. Overall, copper consumption in China stayed mediocre during the current demand off-season.
Regarding the U.S.'s potential tariff on refined copper, rules have been modified on imported copper products, with the product coverage subject to Section 232 tariffs widened and a product qualified as U.S.-made seeing lowered threshold. The Trump administration's review of refined copper imports needs close attention.
