Copper prices fluctuated on July 29, as market sentiment turned cautious before the Federal Reserve announced its interest rate decision. However, the fundamentals stayed supportive, with tight supply side providing strong support for copper prices despite macro disruptions.
On Wednesday U.S. time, the Federal Reserve kept the target range for the federal funds rate unchanged at 3.50%-3.75%, marking the fifth consecutive hold this year. This decision was in line with broad market expectations. The vote, however, was 9-3 in the FOMC, with three in favor of a 25-basis-point increase, indicating growing divergence within the Fed over monetary policy. The resulting policy uncertainty may continue to affect sentiment and price volatility in the copper market going forward.
China's refined copper trading declined on July 29, with spot premiums generally growing across major markets in China. Rigid downstream demand and weak traders' activity around the month-end dampened overall trading, while limited spot supply constrained available copper and supported high premiums.
Trading in China's copper semis markets stayed cautious on July 29, with market participants generally bearish on a substantial demand recovery in the near term. While China's demand off-season will continue to limit consumption growth, rigid copper demand from sectors such as power grid and new energy vehicles will support a firm floor.
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H1 2026 Saw Intertwined Contradictions in China's Copper Market - What's Next for H2?
