Copper prices increased on October 21, supported by factors such as easing market expectations of a Fed interest rate raise in October, and sustained supply concerns due to recent disruptions on the mining sector.
China's refined copper spot trading declined on October 21, with spot premiums fluctuating at elevated levels. Downstream demand recovery remained slow, and enterprises were reluctant to accept high prices, while holders were also unwilling to sell at low, leading to moderated trading. Scrap trading increased amid widening profits, but tax policy adjustments continued to constrain the overall supply release.
Refined copper imports in September increased month on month while declined year on year. The main increase came from non-registered brands such as those from Africa and Russia. Early in the month, previous cargoes delayed by typhoon conditions arrived at ports, boosting imports. In addition, as expectations around U.S. tariff policy shifted during the month, the COMEX-LME price spread fell from its highs. Combined with the opening of China's import window, some shipments were redirected for import into the domestic market. However, ports still required time to queue for unloading, so the increase was still constrained.
Trading in China's copper semis markets fell on October 21, as rising raw material prices increased market caution. Refined copper rod and copper plate/strip orders remained supported by rigid demand, while secondary rod output and sales continued to be limited by copper scrap supply tightness. Transactions in the copper tube market were mainly long-term contract deliveries, and copper bar orders stayed moderate. Overall, consumption growth may still take time.
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