Copper prices slightly rebounded on July 31, due to easing macro pressures and the firm fundamentals. While the slowing U.S. inflation suppressed the U.S. dollar index and weakened pressures on commodity prices, tight refined copper supply at non-U.S. regions also supported copper prices.
China's refined copper trading increased on July 31, with spot premiums generally weakening across major markets in China. Before the weekend, some downstream enterprises replenished raw materials despite elevated prices and the month-end tightening liquidity, leading to slightly increasing spot trading.
Mysteel's clean copper concentrate spot treatment charge (TC) index stood at -$159.67/dmt as of July 31, continuing falling week on week, as concentrate supply may stay constrained in terms of robust demand in the near term. Copper scrap supply also stayed tight, with ongoing tax policy adjustments limiting available spot sources in China.
Trading in China's copper semis markets remained weak on July 31, amid rising raw material prices and sluggish end-user orders amid the off-season. Copper processing in China has been mediocre recently. However, demand from emerging industries and the opening of the export window have helped maintain a certain level of resilience in copper consumption. With copper prices fluctuating, downstream processors have become increasingly cautious, primarily purchasing on an as-needed basis when prices drop.
