Copper prices grew in futures and spot markets on August 24, with heightened macro uncertainties and market sentiment fluctuating. Though LME copper inventory notably grew last week after the short squeeze risk, weakening support for copper prices, the tight copper concentrate supply and robust demand expectations maintained the supportive fundamentals.
China's refined copper trading dropped on August 24, with spot premiums falling across major markets in China as some holders lowered prices to drive sales. However, overall transactions were mediocre due to weak off-season demand and elevated copper prices. In contrast, copper scrap trading notably increased as rising prices widened holders' profits, and downstream processors restocked as growing deliveries kept depleting raw material inventory.
China's refined copper retail inventory dropped notably as of August 24. With import losses widening and export window opening, Chinese smelters increased export plans, leading to reduced shipments to domestic warehouses, and the narrow import arbitrage and port congestion also limited imported refined copper arrivals. Meanwhile, downstream enterprises actively restocked during last week's price dip, also contributing to the inventory decline.
Trading in China's copper semis markets remained weak on August 24, with generally limited new orders and mediocre end-user demand. The current demand off-season in China is unlikely to gradually end until mid-September, with elevated raw material prices expected to continue suppressing market sentiment.
