Today, spot #1 copper cathode in North China traded at a discount of 200 yuan/mt to 120 yuan/mt against the front-month contract, with an average discount of 160 yuan/mt, a decrease of 10 yuan/mt from the previous trading day. The transaction price ranged from 79,700 yuan/mt to 80,010 yuan/mt, with an average price of 79,855 yuan/mt, an increase of 1,130 yuan/mt from the previous trading day.

On June 27 (Friday), over the past decade, nickel smelters in Indonesia have attracted more than $80 billion in investment. As global demand for copper rises, the country is also rapidly becoming a significant player in the copper smelting industry.

[SMM Morning Meeting Summary: Copper Prices Rise Rapidly Amid Weak US Dollar and Tight Supply] On June 26, spot prices of SMM #1 copper cathode against the 2507 contract for the current month were reported at a premium of 30-100 yuan/mt, with an average premium of 65 yuan/mt, up 35 yuan/mt MoM. Looking ahead to today, spot cargo is expected to be in tight supply, with smelters increasing export efforts. Domestic supply in Changzhou and other regions is expected to be tight, and premiums are expected to rise steadily...

[US Fed's Independence Shaken, US Dollar Plummets to Two-Year Low, Boosting Copper Prices] Macro side, media reports indicate that Trump is considering announcing Powell's successor as early as September. Concerns over the future independence of the US Fed have eroded confidence in the soundness of US monetary policy. The market expects the US Fed to cut interest rates more than anticipated, with the US dollar index falling to its lowest level since early 2022, driving up copper prices. Meanwhile, the White House has stated that there are no plans to extend the tariff suspension period beyond July 9, and any changes to this will be decided by the President. Concerns over future tariffs may also support copper prices.

As inflation intensifies and factors such as infrastructure construction drive an increase in capital expenditure, capital costs are increasingly becoming a challenge for the construction of new copper mines.