Copper prices rebounded in futures and spot markets on July 3, as the U.S dollar continued dropping due to softer U.S. economic data and easing rate increase expectations. While positive macro factors and tight copper supply are expected to support prices going forward, relatively slow demand growth may cap the upside.
Refined copper spot trading in China grew on July 3 despite rising prices, with downstream stockpiling before the weekend supporting transactions. Spot premiums generally increased across major markets in China, primarily due to limited refined copper supply amid Chinese smelters' concentrated maintenance and limited import arrivals.
Mysteel's clean copper concentrate spot treatment charge (TC) index stood at -$127.2/dmt as of July 3, continuing falling to historically low levels. Meanwhile, Chilean miner Antofagasta and several major Chinese copper smelters adopted spot index-linked pricing as a contingency plan for their mid-year 2026 long-term copper concentrate contracts, as the traditional fixed benchmark pricing has become increasingly difficult to align with prevailing market conditions. While copper scrap trading increased amid rising prices on July 3, with downstream scrap processors actively seeking for raw materials.
Trading in China's copper semis markets stayed generally weak on July 2. While copper rod orders slightly grew due to stockpiling and traders' active selling for arbitrage profits amid a widening refined-secondary rod price spread, other copper semis orders remained supported by rigid needs, with new orders scarce.
