Copper prices kept increasing in futures and spot markets on August 21, as the U.S. Treasury's expansion of its long-term bond buyback program drove a decline in Treasury yields, boosting market risk appetite and suppressing the U.S. dollar index, which supported copper prices. Meanwhile, with a significant rebound in LME copper inventory last week, the risk of a short squeeze has eased.
China's refined copper trading increased slightly on August 21, with spot premiums generally dropping across major markets in China except for Guangdong, where a continuous inventory decline supported premiums. Meanwhile, copper scrap trading also grew amid rising copper prices, though invoice quota issues continued to constrain overall trading volumes.
Mysteel's clean copper concentrate spot treatment charge (TC) index stood at -$181.25/dmt as of August 21, continuing falling week on week. MMG Limited announced on August 19 that operations at its Las Bambas mine in Peru have been suspended, following an incident on August 18 that resulted in the deaths of two workers. Amid already tight concentrate supply, this has added another disruption to copper supply in South America. However, MMG expects operations to gradually resume from August 21 and has not yet revised its 2026 copper production guidance, suggesting this disruption may be short-lived.
Trading in China's copper semis markets stayed sluggish on August 21, as elevated copper prices and the current demand off-season dampened consumption growth in China, with most end-users procuring raw materials with caution. A significant rebound in short-term copper demand is unlikely, while market participants will focus on restocking during price dips.
