Copper prices dropped in futures and spot markets on July 7, primarily due to the resurgence of conflicts in the Middle East, which revived inflation concerns and suppressed commodity prices.
Refined copper spot trading in China rose on July 7, as falling prices boosted downstream procurement. Meanwhile, spot premiums increased across major markets in China, supported by limited refined copper supply and some traders' bullish sentiment.
Regrading raw materials, copper concentrate supply tightness is unlikely to see significant improvement in the near term. Meanwhile, copper scrap availability also stays limited, due to frequently fluctuating prices impacting profits and industry tax policy adjustments. Therefore, China's refined copper output growth is expected to align more closely with the growth rate of raw material supply under multiple constraints.
Trading in China's copper semis markets stayed weak on July 7 despite dropping raw material prices. Downstream high-value-added copper semis enterprises continued to benefit from robust demand in new energy vehicles, AI data centers, and power grid upgrades, maintaining strong operational performance. However, traditional real estate and home appliance sectors showed weaker demand due to the off-season, resulting in overall domestic copper demand demonstrating resilience but with slow growth.
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