• Supply disruption at Peruvian copper mines: Recently, news of supply disruptions at Peruvian copper mines has intensified market concerns over the vulnerability of the mining sector, providing bottom support for copper prices.
• Domestic refinery production cut expectations: The copper mine shortage situation is severe. Domestic refineries may start production cuts in the second half of the year to further ease supply pressure.
• Inventory changes: The domestic and foreign markets are differentiated, and low inventory supports prices
Overseas inventories have stabilized and rebounded: LME copper inventories increased by 1,075 tons to 94,325 tons, but the accumulation was limited. Market concerns that the decline in LME inventories could trigger extreme market conditions still exist.
Domestic inventories remain at a low level: As of July 3rd, domestic spot inventories of electrolytic copper were 129,400 tons (an increase of 5,900 tons compared to July 30th), SHFE warehouse receipts decreased by 1,078 tons to 24,773 tons, and BC copper remained at 2,503 tons. The low inventories have weakened the off-season effect.
