Copper Prices Fluctuate Amid Tariff Uncertainty and Supply Constraints

Copper prices continued their upward trend on September 18, driven by improving market sentiment and strong fundamentals. The approaching consumption peak season in China is expected to boost end-use demand, while supply will remain tight due to persistent raw material shortages. This combination of factors supports the price floor.

China's refined copper spot trading saw a slight increase, with spot premiums growing further from elevated levels. Despite high prices, downstream stockpiling before the weekend boosted transactions, and scrap trading increased as rising copper prices supported upstream selling enthusiasm.

The raw material market remains tight, with Mysteel's imported copper concentrate spot treatment charge (TC) index at -$224.47/dmt on September 18, continuing to fall week on week. Traders preferred offering based on index deduction, while smelters stayed cautious due to cost pressures.