On June 12, copper prices grew in futures and spot markets, as the U.S. and Iran have reached a peace agreement on the Middle East conflict, alleviating market concerns over accelerating inflation and slowing economic growth.
Amid rebounding copper prices, refined copper trading in China dropped on June 12, while the approaching contract rollover also tightened spot circulation. Spot premiums diverged across China, rising in regions with limited supply such as Guangdong and Tianjin, while declined in other major markets.
Mysteel's 25% clean copper concentrate treatment charge (TC) index stood at -$119.33/dmt on June 12, continuously falling week on week. Due to smelters' strong demand and tight copper concentrate supply, TCs are unlikely to rebound from the current extremely low level in the near term.
Trading in China's copper semis markets declined on June 12, as rebounding raw material prices and sluggish end-user demand suppressed downstream procurement. Activity in copper semis markets has been significantly influenced by copper price volatility recently, with overall market sentiment remaining cautious.
Moving forward, China's refined copper supply may slightly contract due to limited imported copper arrivals and smelters' concentrated maintenance, while consumption may stay firm on rigid end-user demand, together supporting a price floor.
