On June 16, copper prices increased at the LME while declined in China's futures and spot markets. Copper prices are subject to significant volatility due to multiple factors, including geopolitical developments, macroeconomic policies, and speculative sentiment. Consequently, market participants in China's copper industry stayed broadly cautious.
China's refined copper spot trading improved on June 16, as falling prices and recovering spot supply after contract rollover boosted market transactions. Meanwhile, spot premiums generally dropped across major markets in China, with holders forced to lower prices for sales amid widespread downstream caution.
Regarding the copper scrap market, falling prices on June 16 notably dampened upstream holders' selling willingness. Though copper scrap inventory at downstream processors remained relatively low, invoice issues and sluggish end-user demand constrained their procurement sentiment, leading to weak trading.
Trading in China's copper semis markets remained generally weak on June 16, with enterprises staying cautious due to frequently fluctuating raw material prices. Though large end-users in the copper rod and copper plate/strip sectors maintained relatively strong procurement, consumption in other copper semis sectors stayed mediocre due to sluggish demand during the current off-season.
