Copper prices continued rising in futures and spot markets on September 18, primarily due to improving market sentiment and strong fundamentals. Approaching China's consumption peak season, end-use demand is expected to recover, while supply will remain tight on persisting raw material shortage, together supporting the price floor. Copper prices are expected to fluctuate in the near term, awaiting further clarity on potential U.S. tariffs on imported refined copper.
China's refined copper spot trading slightly increased on September 18, with spot premiums growing further from elevated levels due to limited supply. Despite high prices, downstream stockpiling before the weekend boosted transactions. Scarp trading notably increased, as rising copper prices supported upstream selling enthusiasm and upcoming holidays boosted scrap processors' stockpiling.
Regarding raw materials, Mysteel's imported copper concentrate spot treatment charge (TC) index stood at -$224.47/dmt as of September 18, continuing falling week on week, indicating extreme supply tightness. Traders preferred offering based on index deduction, while smelters stayed cautious on procuring under cost pressures, leaving the spot market relatively weak.
Trading in China's copper semis markets stayed mediocre on September 18. Continuously rising prices led to cautious end-user procurement. Although market sentiment warmed up ahead of the Mid-Autumn Festival and China's National Day holidays, high prices continued to suppress consumption, and downstream stockpiling remained primarily focused on fulfilling essential needs.
