Copper prices slightly rebounded in futures and spot markets on August 28, primarily supported by the fundamentals, as supply in non-U.S. regions stayed tight. Regarding macro disruptions, sentiment turned cautious ahead of Fed Chair Warsh's debut at the Jackson Hole symposium, with his talks later proving hawkish.
China's refined copper trading dropped on August 28, with spot premiums generally surging across major markets, except for Guangdong where subdued downstream consumption suppressed prices. Holders firmly supported prices amid limited available copper, leading spot premiums in China to reach the highest level this year.
According to Mysteel, due to the impact of Typhoon Saudel, major ports temporarily suspended on-site operations, and vessels simultaneously halted loading and unloading activities last week. Most import shipping schedules experienced varying degrees of delay, with severe port congestion still persisting. Furthermore, with China's import losses deteriorating, import inflows remained limited. Meanwhile, the export window reopened, and some smelters actively scheduled exports. Consequently, China's copper tightness may find little relief in imports.
Trading in China's copper semis markets dropped on August 28, as rising raw material prices and weak end-use demand suppressed overall transactions. With the consumption peak season to arrive in September and October, recent downstream operating rates have seen modest improvements, though this was primarily driven by restocking at price dips rather than a sustained rebound in demand. Actual demand release moving forward needs close attention.
