Copper prices dropped in futures and spot markets on July 23, primarily due to rising macro pressures from escalating Middle East conflicts. Spot premiums also generally declined across major markets in China amid weak downstream demand, leading to improving refined copper spot transactions.
China's refined copper retail inventory slightly rebounded as of July 23, as rising copper prices this week suppressed downstream consumption, and imported copper arrivals slightly increased. However, inventory stayed at low levels, indicating relatively tight spot supply in China, which supported a firm floor for copper prices.
Regarding copper scrap, transactions notably declined on July 23 due to falling copper prices narrowing the refined-scrap copper price spread, and downstream processors have procured sufficient scrap during earlier favorable prices. Meanwhile, tax policy adjustments continued to constrain China's scrap supply, also limiting trading.
Trading in China's copper semis markets varied on July 23. Though refined copper rod and copper plate/strip orders slightly increased amid declining raw material prices, secondary rod orders dropped due to limited spot supply, while copper tube and copper bar transactions stayed weak during the current demand off-season. Overall, copper consumption in China remained supported by rigid demand.
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