Copper prices rebounded in futures and spot markets on September 3, as the U.S. August ADP employment data came in below expectations, weakening bets on a September rate hike and boosting market risk appetite. Meanwhile, the copper market fundamentals stayed strong, together supporting prices.
China's refined copper spot trading dropped on September 3, with rising prices and cautious downstream sentiment suppressing transactions. Meanwhile, some holders further reduced prices to facilitate transactions, keeping spot premiums on a downward trend. Copper scrap trading also slightly increased, as upstream traders currently held low inventories and showed some willingness to replenish, while downstream processors continued to purchase based on rigid demand.
Refined copper spot inventory in China kept falling as of September 3. Imported copper inflows increased slightly, though the volume remained relatively limited. Meanwhile, domestic arrivals continued to be low. The nearby Back structure spread widened, and with copper prices trading at elevated levels, downstream purchasing showed little improvement and warehouse outflows remained modest. Overall, China's refined copper inventory stayed at relatively low levels and supported a firm price floor.
Trading in China's copper semis markets dropped on September 3. After prices rebounded, downstream buyers grew more cautious, with most purchases occurring during price lows. Overall, as the traditional consumption peak season typically starts in September and October, demand is expected to gradually pick up. However, high copper prices continue to curb consumption growth, and the market remains dominated by essential purchases in the short term.
