On June 8, copper prices dropped in futures and spot markets, as market participants began to digest expectations of a Federal Reserve rate hike by the end of this year.
China's refined copper spot trading slightly increased on June 8, with spot premiums also growing across major markets amid limited refined copper arrivals and firm rigid downstream demand. Copper scrap transactions saw limited growth, though upstream holders stayed reluctant to sell due to losses under falling copper prices.
Refined copper retail inventory in China continued dropping as of June 8, due to the current Chinese smelters' peak maintenance period and limited imported refined copper arrivals, as well as downstream rigid procurement during copper price declines. Overseas, LME copper inventory experienced continuous declines, amid the wide COMEX-LME copper price spread caused by U.S. copper import tariff expectations, with COMEX inventory persistently growing.
Trading in China's copper semis markets improved on June 8 amid falling raw material prices, though actual end-use demand growth remained limited. Moving forward, copper semis consumption is expected to be supported by long-term contract deliveries and rigid end-use demand during the current demand off-season.
