Copper prices decreased in China's futures market while slightly increased in the spot market, with LME prices also growing on July 2. Softer U.S. economic data that tempered rate hike expectations as well as the declining U.S. dollar index supported price increases, while overall macro sentiment stayed cautious, capping price growth.
Refined copper spot trading in China grew on July 2, as downstream enterprises actively procured at low prices. Spot premiums generally increased across major markets in China, as Chinese smelters' refined copper shipments stayed relatively low, limiting available supply.
China's refined copper retail inventory dropped as of July 2, with trends diverging across markets. Though Guangdong's inventory increased, overall inventory declined due to downstream enterprises' active purchases during low prices. Meanwhile, bonded inventory saw limited changes as Chinese smelters' export cargo arrivals offset imports into the domestic market, amid the favorable import arbitrage.
Trading in China's copper semis markets stayed sluggish on July 2. Previous concentrated stockpiling by end-users limited copper rod orders, while copper plate/strip trading saw limited changes amid market caution. Meanwhile, copper tube manufacturers focused on delivering previous orders, and copper bar enterprises produced largely based on orders received.
