Copper Prices Fluctuate Upward Amid Tight Supply and Hawkish Fed

Copper prices in China fluctuated upward throughout July, according to data from SunSirs. The price started at 102,195 RMB/ton and rose to 106,055 RMB/ton by the end of the month, marking a 3.78% increase for the month and a year-on-year rise of 34.95%. This upward trend is likely due in part to tight ore supply and low inventory levels.

On the macro front, the Federal Reserve kept interest rates unchanged at 3.5%, 3.75% in July but adopted a hawkish tone, which could impact copper prices moving forward. Additionally, LME data shows a significant drop in copper inventories during July, with stocks down 23.09% from the beginning of the month.

Looking ahead to August, copper prices lack a strong catalyst for significant directional movement and are expected to fluctuate within a high range due to ongoing US-Iran tensions and expectations for interest rate hikes remaining unchanged.