Copper prices dropped in futures and spot markets on September 24, as market concerns rose that the Federal Reserve will raise interest rates again this year. However, supply-side disruptions and bullish market sentiment continued to support copper prices. On September 25, China's futures market was closed for the Mid-Autumn Festival holiday, while LME copper prices fluctuated slightly.
Operations at Escondida had once been suspended after a fatal accident happened on September 23, local time, which has started resuming operations gradually since September 25, according to market sources. Mysteel's imported copper concentrate spot treatment charge (TC) index stood at -$224.63/dmt as of September 24, remaining at a historically low level, signaling severe raw material tightness that has begun impacting refined copper output in China.
China's refined copper spot trading declined on September 24. On the last trading day before the holiday, downstream enterprises showed reduced enthusiasm for stockpiling. Some holders proactively lowered prices to facilitate transactions, leading to falling spot premiums in some markets. Nevertheless, with retail inventory low and downstream stockpiling before China's National Day holiday persisting, spot premiums in China are expected to stay elevated.
Trading in China's copper semis markets was generally mediocre on September 24, due to market caution under elevated prices and the approaching holidays. End-use demand recovery stayed slow, and with some enterprises planning maintenance during the holidays, overall stockpiling was moderate. Actual demand performance during China's consumption peak-season in October needs close attention.
