[Inventory Buildup Persists Despite RC Reductions, Weak End-Use Demand Hinders Resumption of Production at Copper Cathode Rod Enterprises] The weekly (6.6-6.12) operating rate of major domestic copper cathode rod enterprises declined by 1.66 percentage points MoM to 73.21%, which was 4.32 percentage points lower than expected and 8.47 percentage points higher YoY.

[SMM Morning Meeting Summary: Uncertainty in Sino-US Trade Relations Restrains Copper Price Uptrend] On June 12, spot prices of #1 copper cathode against the 2506 contract for the current month were quoted at a premium of 40-150 yuan/mt, with an average quoted premium of 95 yuan/mt, unchanged MoM. Copper prices fell today, and downstream procurement sentiment improved, but currently, downstream players under the backwardation structure are more inclined to make purchases after the contract rollover...

[Weak PPI Fuels Bets on Interest Rate Cuts, Unresolved Tariffs Weigh on Copper Prices] Macro side, the number of initial jobless claims in the US for the week ending June 7 was recorded at 248,000, higher than the expected 240,000 and marking a new high since the week ending October 5, 2024. The US core PPI month-over-month rate for May was recorded at 0.1%, lower than the expected 0.30%. Traders have once again fully priced in two interest rate cuts by the US Fed within the year. The US dollar index has declined, providing support for copper prices. However, the unresolved tariffs and trade outlook continue to exert downward pressure on copper prices.