Copper prices continued rising in futures and spot markets on September 17, despite the Federal Reserve's decision to raise interest rates and hawkish stance going forward. The market had already priced in the Federal Reserve's rate hike, and with the hike now implemented, short covering combined with strong fundamentals pushed copper prices back into an upward trend.
China's refined copper spot trading increased on September 17, with spot premiums remaining elevated due to limited available supply. After the contract rollover, market sentiment gradually recovered, combined with the approaching Mid-Autumn Festival and China's National Day holidays boosting downstream stockpiling, leading to improving transactions. Scrap trading also increased, as upstream holders, concerned about another price pullback, showed increased willingness to sell and alleviate inventory pressure. Downstream scrap copper processors, meanwhile, continued to purchase based on needs.
Refined copper spot inventory in China continued dropping as of September 17, refreshing this year's new low, primarily due to concentrated downstream procurement during price declines and limited available supply. Moving forward, with consumption expected to improve before the holidays and supply unlikely to recover notably, copper inventory in China is anticipated to drop further.
Trading in China's copper semis markets remained generally weak on September 17, mainly due to elevated prices and insufficient end-use demand. End-users made moderate pre-holiday stockpiling, with new orders remaining limited. The actual release of demand going forward still needs to be observed.
