On June 9, LME copper prices continued dropping, while China's futures and spot markets saw prices slightly rebounding. Recently, fundamental changes have been limited. The market is broadly focused on the progress of U.S.-Iran negotiations and signals from the Federal Reserve's policy meeting. In the short term, copper prices are likely to fluctuate at elevated levels in response to shifts in macroeconomic sentiment.
China's refined copper spot trading declined on June 9, with spot premiums growing across major markets amid limited refined copper arrivals and holders' intention to support prices. Relative tightness in refined copper supply is expected to persist in the near term, likely to continue supporting spot premiums.
Regarding copper scrap, trading on June 9 increased due to rebounding domestic copper prices. Downstream manufacturers currently held raw material inventories above safe levels. Coupled with weak end-user consumption, their willingness to make large-scale purchases of scrap copper was relatively low.
Trading in China's copper semis markets remained mediocre on June 9. Though secondary copper rod orders slightly increased with the widening refined-secondary copper rod price spread, activity in other semis markets was weak. Refined copper rod saw shrinking spot and long-term contract demand, while copper plate/strip manufacturers experienced slow new order growth. Meanwhile, copper tube producers reduced output plans due to declining demand from the air-conditioner sector, with copper bar enterprises even cutting prices to attract orders and ensure production. Overall, copper consumption in China is unlikely to see significant growth in the near term.
