Copper prices saw divergent trends in China and overseas markets on July 30, with SHFE prices slightly falling while LME copper rebounding. Though the Federal Reserve kept the target range for the federal funds rate unchanged at 3.50%-3.75%, growing divergence within the Fed over monetary policy resulted in rising uncertainty and suppressed market sentiment. However, subsequent U.S. economic data showed cooling inflation, leading to a decline in expectations of interest rate increases and a weaker U.S. dollar index. Consequently, commodity prices received support, prompting overseas markets to respond first with a rise in copper prices.
China's refined copper trading declined on July 30, with spot premiums fluctuating at elevated levels. Approaching the month-end, downstream enterprises faced tight liquidity, leading to constrained trading. Regarding the copper scrap market, limited supply and invoice issues continued to limit transactions.
Refined copper spot inventory in China saw limited increase as of July 30, primarily due to weak downstream procurement around the month-end and improved import arrivals. However, shipments from domestic smelters stayed low, constraining the overall growth. Meanwhile, rising imports and limited export arrivals resulted in declines in China's refined copper bonded inventory.
Trading in China's copper semis markets diverged but stayed weak overall on July 30, due to sluggish end-use demand amid the off-season, elevated raw material prices, and cautious market sentiment.
