I. Trend of spot copper price

As shown in the chart above, this week’s domestic copper price shocks mainly, the average domestic spot copper price at the beginning of the week was 46,330 yuan/ton, and at the end of the week it was 46,456.67 yuan/ton, up 0.27%, down 12.54% year-on-year.

II. Copper Current Statement

As shown in the chart above, this week’s main contract price of copper is similar to the spot price trend, which rises first, then falls and then rises slightly. However, the main contract price is lower than the spot price, indicating that people are pessimistic about copper price expectations for the next two months.

II. Market Analysis

Supply: Negotiations between Codelco, the world’s largest copper producer, and Chuquicamata Copper Mine Union’s labor agreement have broken down and a strike will begin on Friday.

Demand: China’s passenger car sales fell 17.4% year-on-year in May, the largest monthly decline in history, while new energy vehicle sales grew 1.8% year-on-year, slowing down significantly. Weak industrial and manufacturing activities also hit demand. Short-term terminal consumption weakness remains unchanged, and domestic demand pressure remains.

Inventory: China’s bonded warehouses and copper stocks in the previous period are decreasing. With the strict implementation of import restrictions on scrap copper, inventory levels are expected to further decline. Zhou Lun copper inventory unexpectedly increased by 19.31% from 40,850 tonnes to 252,425 tonnes.

3. Prospects for the Future Market

In summary, the copper analysts of the non-ferrous branch of the business association believe that the interference at the end of the mine, such as the strike in Chile’s copper mines and the decline of the mine’s taste, is increasing and the supply expectation is on the tight side, but the demand is weak, especially in the off-season of demand. Demand is further weakening and both supply and demand are weakening. It is expected that copper prices will remain volatile in the short term.