Downstream purchasing willingness is weak due to high prices, and spot market transactions are sluggish [SMM Yangshan spot copper]

According to foreign media reports, the US administration has unveiled the $500 million US-Africa Strategic Investment Program. The initiative marks a major strategic shift in Washington's engagement with sub-Saharan Africa by prioritizing private-sector commercial investment over traditional foreign aid. Administered by the US Department of State's Bureau of African Affairs, the program aims to strengthen critical mineral supply chains, expand business opportunities for American firms, and diversify supply networks away from concentrated markets. The program will distribute funds through up to 10 cooperative agreements or grants, with individual awards ranging from $5 million to $50 million. Rather than directly financing government infrastructure, the initiative focuses on creating favorable market conditions to mobilize U.S. private capital into bankable mining, processing, and refining projects. Key operational objectives include improving geological data, streamlining regulatory frameworks, supporting transaction advisory services, and expanding local mineral processing across resource-rich African nations. Beyond direct mineral sourcing, the framework incorporates a Commercial Diplomacy Acceleration pillar to support broader regulatory reforms in energy, technology, and trade infrastructure. With Africa holding roughly 30% of global critical mineral reserves, including dominant shares of cobalt, copper, and platinum group metals, the program represents an investment-led strategy to secure vital raw materials for defense, clean energy, microelectronics, and advanced manufacturing.

[SMM Shanghai Spot Copper] Looking ahead to next week, the current tight supply of available spot cargoes remains unchanged. After low-priced sources were quickly absorbed intraday, suppliers' willingness to hold prices firm re-emerged, with the premium rebounding to around 300 yuan/mt, indicating strong support from below. According to SMM, after a slight correction in SHFE copper prices, end-use demand emerged, and orders for some copper processing enterprises increased, with end-users mostly placing orders around 104,500 yuan/mt. In terms of supply, some LME cancelled warrants have already been shipped to China and are expected to arrive gradually around next week; the actual supply remains to be observed. Overall, with low inventory, support from the backwardation structure, and downstream dip-buying, Shanghai spot copper prices against the SHFE 2608 contract are expected to maintain a premium next week, though the overall center may edge down slightly. Attention should be paid to the actual impact of import arrival pace on spot circulation.

[SMM Brass Billet Flash] This week (7.17-7.23), the SMM weekly operating rate of brass billet enterprises was 49.13%, down 0.48 percentage points WoW. Downstream off-season market conditions made a substantial recovery unlikely, while the tight supply of recycled brass raw materials remained unresolved, keeping industry production under pressure.