China Copper Prices Drop Amid Market Caution and Typhoon Disruptions

Copper prices in China's futures and spot markets dropped slightly on August 10, as market sentiment turned cautious due to last week's sharp price increase. The London Metal Exchange (LME) copper prices continued to grow, driven by uncertainty over the Middle East conflict and the prospect of reopening the Strait of Hormuz, as well as continuously falling LME inventory caused by unclear U.S. tariff policies on refined copper.

Refined copper trading in China fell on August 10, with copper prices remaining elevated and typhoon Dolphin leading to the suspension of warehouse inbound and outbound operations in the Shanghai market. Spot premiums varied across major markets in China but are expected to stay relatively stable before the upcoming contract rollover.

The refined copper retail inventory in China reverted to a downward trend as of August 10, with the overall level staying at year-to-date low. Domestic supply and imported copper inflows remained limited due to disruptions caused by typhoon Dolphin, while downstream demand was constrained by elevated copper prices.