On June 15, copper prices continued strongly growing in futures and spot markets. With the United States and Iran reaching a temporary agreement and the Strait of Hormuz set to reopen, energy prices have fallen sharply. Market concerns over inflation have gradually diminished, leading to a broadly positive market sentiment and supporting copper prices. This week, attention should be paid to the result of the Federal Reserve's policy meeting, and the impact of other potential macroeconomic factors on copper prices.
China's refined copper spot trading dropped on June 15, due to rising prices and the contract rollover tightening spot supply. Meanwhile, spot premiums generally increased across major markets in China except for Guangdong, which saw growing local inventory.
Refined copper retail inventory in China continued to experience an overall decrease as of June 15, though trends diverged across markets. Shanghai saw persistent inventory declines as recent arrivals have been relatively low, and downstream enterprises showed decent restocking demand during price lows, leading to higher outflows from warehouses. In contrast, Guangdong's refined copper inventory increased slightly due to deliveries into exchange warehouses and high spot premiums suppressing spot consumption.
Trading in China's copper semis markets stayed generally mediocre on June 15, mainly supported by long-term contract deliveries. Amid high raw material prices and sluggish end-use demand, notable consumption growth is unlikely in the near term, though long-term copper demand expectations remain solid.
