Spot copper extended its rebound on July 6, 2026, with Yangtze spot #1 copper rising 260 yuan/ton and domestic futures leading the gains. LME copper edged lower amid overseas macro pressure, while aluminum posted a mild gain. The market maintained a clear pattern of domestic strength vs. overseas weakness, with copper outperforming aluminum in the repair rally.
Latest Data:
Yangtze #1 Copper: RMB 103,420/ton, +260
Bare Copper Wire (Oxygen-Free, Hard): RMB 104,580/ton, +260
Enameled Wire: RMB 108,690/ton, +260
Yangtze A00 Aluminum: RMB 22,840/ton, +80
Guangdong #1 Copper: RMB 103,280/ton, +230
Guangdong A00 Aluminum: RMB 22,830/ton, +80
LME Copper: USD 13,286/ton, -45
SHFE 2607 Near-Month Contract: RMB 103,300/ton, +350
SHFE 2608 Main Contract: RMB 103,330/ton, +500
Market View:
Domestic base metals extended their recovery rally in early July. Spot copper advanced steadily, while SHFE copper futures outperformed with the main 2608 contract jumping 500 yuan/ton, fueled by returning capital and improving sentiment on domestic pro-growth policy expectations. Continued drawdowns in domestic spot inventories and tightening spot supply, partly driven by cross-regional cargo reallocation ahead of US tariff implementation, also lent solid support to prices. Overseas, LME copper slipped 45 dollars/ton, pressured by a firmer US dollar and lingering concerns over soft European manufacturing demand. Aluminum trailed with a modest gain, as ample domestic supply and elevated inventories capped its upside. The market has shifted into an oscillating upward repair phase, driven by policy optimism and tight near-term spot conditions, while the sustainability of the broader rally will depend on the actual pace of Q3 demand recovery.
Industry Note:
Copper price rebounds have spurred a moderate pickup in spot trading activity, with downstream cable and electrical manufacturers stepping up rigid-demand replenishment amid expectations of further price gains. However, bulk speculative stockpiling remains absent, as buyers remain cautious about high price levels and uncertain demand prospects. Aluminum's rebound has been muted by persistent oversupply and weak seasonal demand, with downstream buyers sticking to hand-to-mouth procurement. Looking ahead, markets will closely track domestic stimulus policy details, mid-year peak-season demand delivery and Fed rate-cut trajectories. Vigilance is advised against pullback risks if policy expectations fall short of reality.
Chatnow Insight:
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