Copper prices continued rising in futures and spot markets on September 9, primarily due to the tight fundamentals. On the macroeconomic front, market bets on a Federal Reserve rate increase in September have fluctuated little recently. Investors have shifted their focus to the upcoming U.S. August inflation data, awaiting further guidance. Meanwhile, how the U.S. import tariff policy on refined copper will ultimately be implemented and how the market will respond remain the biggest sources of uncertainty.
China's refined copper spot trading decreased on September 9 as price increase persisted. High copper prices clearly suppressed downstream consumption, with very few new orders being placed, and spot premiums generally dropped across major markets in China.
Overall copper scrap transactions narrowed compared to the previous trading day. Some upstream holders cleared out their inventories through active selling, and waited for copper prices to fall before restocking. Downstream scrap processors' purchasing willingness also declined notably after actively restocking, mainly focused on expediting deliveries.
Trading in China's copper semis markets varied on September 9 but stayed generally sluggish, with refined copper rod orders slightly rising while other semis seeing subdued orders. The conflict persisted between traditional peak consumption season expectations and the suppression of consumption by high copper prices, with downstream enterprises continuing to restock only based on rigid demand, and the actual consumption improvement needs close attention.
