Copper prices fluctuated downwards in futures and spot markets on August 13. As the Middle East conflicts saw no easing and U.S. dollar index stayed high, macro pressures suppressed commodity prices.
China's refined copper trading continued falling on August 13, with the approaching contract rollover keeping market sentiment cautious and the deep backwardation structure in near-month futures contracts leading to subdued spot purchases. Spot premiums significantly dropped across major markets in China, but downstream procurement remained sluggish.
As of August 13, China's refined copper spot inventory slightly decreased compared with August 6, but increased compared with August 10. Shanghai's inventory initially declined and then increased. At the beginning of the week, warehouse inbound and outbound operations were temporarily suspended in some locations due to the typhoon Dolphin. Meanwhile, significant import losses also kept import inflows constrained. However, the backwardation structure in near-month futures contracts kept downstream procurement cautious and holders actively delivered to warehouses, leading to the subsequent inventory increase. Guangdong's inventory, however, kept decreasing as smelters increased exports, reducing refined copper arrivals at domestic retail warehouses.
Trading in China's copper semis markets varied but stayed generally weak on August 13. Copper rod orders increased, as end-users actively restocked during price declines. However, other semis saw limited changes in orders, with end-use market sentiment staying cautious.
