Copper prices fell in futures and spot markets on June 23, as expectations of Federal Reserve rate hikes and the recent rise in the U.S. dollar index weighed on commodity prices.
With some holders actively lowering prices to promote sales, refined copper spot premiums dropped across major markets in China. Amid the price decline and downstream enterprises' intention to purchase at low, China's refined copper spot trading slightly improved on June 23. Meanwhile, refined copper traders' inventory increased post-holiday, due to improved smelters' shipments during the holiday and sluggish demand.
Copper scrap trading stayed weak on June 23, as repeated price adjustments created uncertainty. Upstream sellers with high-cost inventories faced losses and showed weak selling interest, while downstream scrap processors maintained cautious purchasing due to sluggish end-user demand.
Trading in China's copper semis markets saw some improvements amid falling raw material prices. While copper rod and copper plate/strip orders grew, copper tube and copper bar markets showed limited reaction to price declines, indicating weak end-user consumption amid the demand off-season.
Moving forward, copper prices face near-term pressure from macroeconomic uncertainties and weak seasonal demand, though raw material supply tightness and robust long-term demand expectations may support a firm price floor.
