Copper Prices Fluctuate Amidst Shift in Fed Rate Hike Expectations
Copper prices have been fluctuating due to shifting expectations regarding US monetary policy and geopolitical tensions. The Federal Reserve's recent decision to delay interest rate hikes has led to a change in market assessments, with bets on a Fed rate hike now shifting towards October.
Tight copper concentrate supplies and delayed restarts of major mines have also contributed to the pressure on smelter profitability. The negative treatment charges for imported copper concentrate have widened rapidly to -$146.15 per tonne, while sulfuric acid prices are expected to remain high but stagnant in August.
Meanwhile, steady end-user consumption and a rebound in auto production and sales are driving demand for refined copper. However, the air conditioner industry is expected to weaken further in August due to seasonal trends.