On June 10, copper prices dropped in futures markets while saw limited upward fluctuations in China's spot market. Supported by firm rigid demand and relatively tight supply in China, SHFE copper prices saw a smaller decline than LME. With an uncertain outlook for the Middle East conflict and widespread concerns over inflation, macro pressures on copper prices have been notable.
China's refined copper spot trading slightly increased on June 10, with spot premiums generally growing across major markets. Refined copper arrivals in China remained limited, due to Chinese smelters' concentrated maintenance and U.S. copper import tariff expectations shrinking non-U.S. market supply. Coupled with downstream enterprises' reluctance to purchase at high premiums, the growth in daily transactions was limited.
Copper scrap trading also increased on June 10, as some upstream holders were bearish about future copper prices, actively seeking favorable prices to sell and alleviate inventory pressure. Downstream copper scrap processors mostly purchased based on rigid needs. As a result, overall transaction volumes remained relatively limited.
Trading in China's copper semis markets stayed weak on June 10. Frequent copper price fluctuations triggered widespread caution among downstream enterprises, coupled with sluggish end-user demand amid the current off-season, copper semis transactions remained mediocre in China. Overall, copper consumption in China is unlikely to see significant growth in the near term.
