Copper prices slightly trended upwards in futures and spot markets on August 11, with mixed bullish and bearish factors keeping prices fluctuating at high. As U.S. import tariff policies on refined copper remained uncertain, copper continued flowing to the North American market, tightening non-U.S. inventory and providing a solid floor for prices.
China's refined copper trading increased on August 11, due to holders' high willingness to sell amid the backwardation structure of near-month futures contracts. Spot premiums also generally dropped across major markets in China except for Guangdong. However, as downstream demand stayed constrained, the increase in spot trading was limited.
Regarding copper scarp, rising copper prices widened the refined-scrap copper price spread, leading to active transactions. However, downstream processors were constrained by invoice quota issues, limiting purchases despite relatively high finished product profits. Additionally, as copper anode production offered better cost efficiency, some integrated processors shifted their focus toward anode production, supplementing smelting raw materials to some extent.
Trading in China's copper semis markets stayed sluggish on August 11. Downstream copper rod buyers became increasingly cautious amid high prices, predominantly purchasing based on rigid needs. Copper plate/strip buyers slowed their procurement and adopted a wait-and-see approach. Demand for copper tubes cooled recently, with producers reducing output in response. The copper bar market, affected by the off-season, saw no significant improvement in orders.
