Copper prices saw limited declines in futures and spot markets on August 27, with inflation concerns and tense geopolitical conflicts suppressing market sentiment. In contrast, the fundamentals stayed supportive on tight available supply and strong demand expectations, keeping prices fluctuating at elevated levels.
China's refined copper trading slightly increased on August 27, while spot premiums generally experienced notable growth. Available refined copper remained tight in China's spot market, pushing spot premiums significantly higher. Coupled with relatively weak downstream demand, overall spot trading saw limited changes.
Refined copper retail inventory in China continued declining as of August 27. On one hand, as some smelters kept exporting, the volume of domestic copper delivered to warehouses remained relatively low. Meanwhile, due to delays in shipping schedules and typhoon-related disruptions, the inflow of imported copper has also been relatively limited. On the other hand, downstream procurement based on rigid demand persisted, also contributing to the inventory decline. Moving forward, as China's copper consumption is expected to gradually enter the peak season, inventory is likely to continue falling, supporting copper prices.
Trading in China's copper semis markets slightly improved amid falling raw material prices on August 27, though overall demand stayed weak. Processors had limited acceptance of high copper prices. While copper consumption in high-tech sectors continues to provide structural support, this is not yet sufficient to fully offset the weakening demand from traditional sectors in the short term. The actual demand growth in the upcoming peak season needs close attention.
