Copper Prices Surge Amid Improved Market Risk Appetite

Copper prices have been on the rise in both futures and spot markets as of August 5, thanks to improved market risk appetite following signs of a resolution to the U.S.-Iran conflict. The weakening U.S. dollar index has also contributed to the increase in copper prices.

China's refined copper trading saw a slight decrease due to sluggish downstream consumption during the demand off-season and elevated copper prices. Spot premiums dropped across major markets except for Guangdong, where low inventory supported holders' willingness to keep prices firm.

The backwardation structure in near-month futures contract spread has led to relatively elevated spot premiums in China before this month's contract rollover. Copper scrap trading profit increased due to rising copper prices, but downstream processors' stockpiling remained sluggish due to constrained orders.