Copper prices saw limited increases in futures and spot markets on June 17, supported by the supply side as refined copper inventories in non-U.S. regions continued declining due to expectations of U.S. import tariffs on copper.
On June 17 local time, results of the Federal Reserve's June FOMC meeting were announced, with the federal funds rate kept unchanged at 3.50%-3.75%, in line with market expectations. However, the meeting also signaled a bias toward future rate increases, and the market has begun to price in such expectations. Higher interest rates typically weigh on metal prices with strengthening the U.S. dollar and dampening demand for growth-sensitive commodities. Going forward, close attention should be paid to the interplay between macroeconomic volatility and copper's relatively strong fundamental support.
China's refined copper spot trading rose on June 17 despite rising prices. With the Dragon Boat Festival holiday approaching, some downstream enterprises began stocking raw materials to support production during the holiday. Spot premiums largely stabilized, with modest declines in certain markets where supply slightly improved or holders lowered prices to promote sales.
Trading in China's copper semis markets stayed mediocre on June 17, due to sluggish end-user demand during the off-season. Market transactions were mainly supported by long-term orders. According to market feedback, procurement for related copper semis in sectors such as refrigeration components, plumbing valves, and hardware sanitary ware has been declining, resulting in a clear off-season pattern in the copper tube and copper bar markets.
