Copper prices generally fluctuated upwards on July 20, amid the firm fundamentals and uncertain macro disruptions. The tight copper concentrate supply remained severe, with global refined copper production growth slowing. However, due to robust performance in grid and energy storage consumption in China, copper demand had strong resilience.
Refined copper spot trading in China dropped on July 20. Refined copper spot supply remained tight, and holders showed strong resistance to lowering prices, leading spot premiums to hit a new YTD high. Meanwhile, as the intraday copper price center shifted higher, downstream enterprises showed limited willingness to procure at high premiums, leading to an overall decline in transaction volumes. In contrast, copper scrap spot transactions and supply slightly picked up as rising prices widened profits. However, scrap processors maintained rigid procurement, due to limited end-use demand and high tax points.
China's refined copper retail inventory kept falling as of July 20, due to limited domestic smelters' shipments, constrained import arrivals, as well as firm downstream consumption. Inventory in China reach a new YTD low, supporting a firm floor for copper prices.
Trading in China's copper semis markets dropped on July 20, primarily due to rising raw material prices. Amid the current demand off-season and fluctuating copper prices, downstream copper processors and end-users stayed cautious, mainly procuring based on rigid needs.
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H1 2026 Saw Intertwined Contradictions in China's Copper Market - What's Next for H2?
