Copper prices slightly dropped in China's futures and spot markets on August 10, with market sentiment turning cautious due to last week's sharp price increase. LME copper prices continued growing, due to uncertainty over the Middle East conflict and the prospect of reopening the Strait of Hormuz, as well as continuously falling LME inventory caused by unclear U.S. tariff policies on refined copper.
China's refined copper trading fell on August 10, as copper prices remained elevated, and typhoon led to the suspension of warehouse inbound and outbound operations in the Shanghai market. Spot premiums varied across major markets in China, but are expected to stay relatively stable before the upcoming contract rollover.
Refined copper retail inventory in China reverted to a downward trend as of August 10, with the overall level staying at year-to-date low. Due to disruptions of the typhoon Dolphin, port operations in some markets were suspended, and warehouse inbound and outbound activities were delayed. Both domestic supply and imported copper inflows remained limited. However, with copper prices trading at elevated levels, downstream demand was also constrained. As a result, the overall inventory decline was relatively modest.
Trading in China's copper semis markets stayed constrained on August 10, due to elevated copper prices and the current demand off-season. End-users mainly procured based on rigid demand, with copper consumption in China unlikely to see a notable recovery in the near term.
