Asia and Europe Copper Markets Remain Quiet as Traders Await Direction
As traders from Asia and Europe gather in Hong Kong for the London Metals Exchange’s LME Asia Week, spot activities for copper cathode units remain limited in both regions. In Asia, the copper grade A cathode premium remained flat at $(20)-0 per tonne, with demand in China continuing to be weak. Traders are struggling to make a profit as market prices remain at unprecedented discounts.
In the European copper market, sources noted poor demand and slow summer conditions, with the copper grade A cathode premium delivered Germany unchanged at $190-210 per tonne. Despite lower LME prices adding a slight increase in demand, the market continues to be quiet with high borrowing costs and approaching summer holidays.
Meanwhile, in the United States, the copper grade 1 cathode premium held steady at 10-14 cents per lb, with market activity confirmed on the high end. LME copper inventory has risen by 51% in June, reaching 175,475 tonnes, putting pressure on the commodities complex. Traders are monitoring the market for signs of softening, with renewed volatility expected by mid-July.
Overall, traders in all regions are facing challenging market conditions, with limited liquidity and disrupted import markets. As they await more direction from the LME Asia Week in Hong Kong, the copper market remains quiet, with uncertainty looming over future price movements.
