Copper prices continued growing in futures and spot markets on July 6, amid positive macro factors and the firm fundamentals. Moving forward, strong fundamentals with sustained copper concentrate supply tightness and global refined copper inventory imbalance will provide a solid floor for copper prices. However, uncertainties concerning U.S. refined copper import tariffs and seasonal demand weakness in China may cap price upside.
Refined copper spot trading in China fell on July 6, as limited available refined copper supply and elevated prices suppressed downstream enterprises' raw material procurement. Meanwhile, copper scrap transactions also declined, with holders generally bullish about prices but scrap processors having limited acceptance of high prices.
China's refined copper retail inventory continued falling as of July 6, primarily due to constrained domestic smelters' shipments under maintenance and downstream manufacturers' active purchasing at relatively low prices last week. Additionally, bonded refined copper inventory also dropped, with some sources experiencing entrepot trade.
Trading in China's copper semis markets stayed mediocre on July 6. Elevated prices and sluggish end-user demand dampened copper semis consumption, while secondary copper rod transactions were also constrained by limited supply under raw material issues.
