Latest Update in the China Copper Market

Shanghai nonferrous metals closed all with gains as the macro sentiment has been boosted by a series of bullish news. The National Development and Reform Commission (NDRC) said that the country is capable of dealing with changes beyond expectations in the face of the 5.5% GDP growth target.

The following table shows the ferrous and nonferrous metals movement on the SHFE and DCE on Jun 28, 2022

As June is counting down, the first half of 2022 is also coming to an end. Since March, China was hit by the extensive COVID outbreak, during which time Shanghai was locked down for two months, resulting in a historical low in the copper processing industry with east China market hit the most. Now let us review the performance of the copper rod industry in the first half of the year.

SHFE and LME base metals closed mostly with gains as the shorts withdrew from the market after paying off. The market sentiment, on the other hand, has also stabilised as the US core durable goods orders grew by 0.5% in May, adding credibility to Fed Chairman Powell's assertion that the economy is strong enough to withstand interest rate hikes to curb the impact of inflation.

Yangshan copper premiums stood at $61-85/mt under warrants during June 20-June 24, and between $60-78/mt under the bill of lading, with a quotation period of July.

Last week, non-ferrous metals prices were suppressed by the shorts.

Shanghai nonferrous metals closed mixed today as the market pessimism, triggered by aggressive rate hikes in Europe and the US as well as less-than-expected economic readings, has been digested to some extent.

SHANGHAI, Jun 27 (SMM) – Driven by the Russian-Ukrainian war, global energy prices continued to rise, which indirectly increased inflationary pressures in Europe and the United States.