Commodities
Copper Prices Surge on Macro Factors and Tight Supply
The copper market saw an increase in prices on August 4 due to positive macro factors and tight fundamentals. The Middle East conflict has shown progress, and expectations are high for the reopening of the Strait of Hormuz, which has boosted market sentiment. Additionally, LME copper futures inventory continued to decline rapidly as refined copper flowed into the U.S. market, further tightening global supply.
China's refined copper trading decreased on August 4 despite falling spot premiums across major markets. However, limited refined copper shipments from Chinese smelters in the near term will likely keep spot premiums stable. High temperatures have also affected dismantling and recycling operations for copper scrap, limiting its availability.
Copper semis trading in China's markets remained weak on August 4 due to suppressed demand during the off-season. However, growing momentum in emerging sectors such as new energy may lead to interest in advance stockpiling from manufacturers. Exports of high-value-added copper semis are expected to see growth, supporting resilient consumption in China.
The refined-scrap copper price spread remained favorable, but downstream demand was limited due to the off-season. Most copper scrap processors maintained cautious production levels and controlled raw material inventory.
China's refined copper trading decreased on August 4 despite falling spot premiums across major markets. However, limited refined copper shipments from Chinese smelters in the near term will likely keep spot premiums stable. High temperatures have also affected dismantling and recycling operations for copper scrap, limiting its availability.
Copper semis trading in China's markets remained weak on August 4 due to suppressed demand during the off-season. However, growing momentum in emerging sectors such as new energy may lead to interest in advance stockpiling from manufacturers. Exports of high-value-added copper semis are expected to see growth, supporting resilient consumption in China.
The refined-scrap copper price spread remained favorable, but downstream demand was limited due to the off-season. Most copper scrap processors maintained cautious production levels and controlled raw material inventory.