Will Copper Prices Rise after US Fed’s Rate Hike? SMM Interviews

[SMM Shanghai Spot Copper] Looking ahead to tomorrow, according to the Central Meteorological Observatory, this year's No. 9 typhoon "Bawei" has strengthened into a super typhoon. It is expected to approach the eastern sea areas of China around July 10, with a high probability of making landfall in east China. Affected by this, downstream copper semis processing plants in Jiangsu and Zhejiang are concerned that subsequent strong winds and rainstorms from the typhoon could disrupt logistics and production arrangements. They are therefore concentrating on advance stockpiling purchases, pushing up the overall center of Shanghai spot copper premiums. Observing supplier behavior, market transactions were active, and after low-priced cargoes were quickly absorbed, suppliers' willingness to hold prices firm further strengthened. Overall, under the combined effect of the concentrated release of typhoon stockpiling demand, suppliers holding prices firm, and continuous inventory destocking, Shanghai spot copper prices against the SHFE copper 2607 contract are expected to remain at a premium tomorrow, with the overall center continuing to edge up.

[SMM Flash de lingotes de cobre] Según la retroalimentación de encuestas de primera línea realizadas a una muestra de empresas de lingotes de cobre de todo el país, las expectativas del mercado sobre el desempeño de la industria en julio son generalmente pesimistas. Los impulsores de mejora a corto plazo siguen siendo insuficientes y múltiples factores negativos continuarán intensificándose. SMM prevé que la tasa operativa integral de los productores de lingotes de cobre de China se reduzca en 2,44 puntos porcentuales intermensuales hasta el 43,65% en julio, lo que supone una caída interanual de 1,17 puntos porcentuales. Se espera que la tendencia de funcionamiento a bajo nivel de la industria continúe.