Falling Downstream Demand Drives Down the Copper Plate Prices Globally

During the third week of April, global Copper Plate prices witnessed a decline due to the reduced downstream demand from the power and construction sectors. Market players pinpointed investor caution as the primary reason for the fall in Copper Plate prices. The investors' reluctance was driven by their expectations of further interest rate hikes, which put pressure on cyclical assets, resulting in a stronger dollar. The uncertainty around interest rate hikes has caused investors to focus on the U.S. Federal Reserve's actions to control inflation, which remains high. In order to curb inflation, higher interest rates can reduce economic activity and demand for Copper Plates.The Copper Plate market is anticipating that the Fed will raise interest rates at its upcoming policy meeting. As a result, it will closely monitor this week's economic data, which could influence the Fed's next policy decision and future interest rate hikes.

Towards the end of last week, it was noted that Copper Plate prices saw a decline while downstream replenishment enthusiasm increased, leading to a decrease in inventories. However, the overall operating rate and trading volume of copper semis processing enterprises dropped last week, primarily due to the approaching end of the peak season and recent high copper prices. Furthermore, after the April contract delivery was completed, the willingness of the smelter to ship Copper Plates to warehouses also decreased. This, coupled with the sale of cargoes under registered warrants, resulted in a decrease in inventories. According to market players, the latest U.S. data showing a decline in labor market momentum, retail sales, and manufacturing activity impacted Copper Plate prices, often regarded as an economic gauge.

Copper Plate market players indicate that the U.S. Federal Reserve has entered a quiet period ahead of its May interest rate meeting and will refrain from making any statements that could affect market expectations. The recent instability of the U.S. treasury bond yield has stabilized, suggesting that the market expectation volatility caused by the previous banking crisis has subsided. Nevertheless, the threat of a recession still exists due to hawkish interest rate hikes and weakened economic data. If there is a new wave of potential risk aversion, it could cause Copper Plate prices to decline.

ChemAnalyst predicts that Copper Plate prices are likely to remain stable and within a certain range in the upcoming week. As the Labor Day holidays approach, downstream buyers of Copper Plate are expected to restock, which could push up spot quotes in the spot market. However, the uncertainty surrounding the Fed's next policy decision and the risks of a recession may have an impact on Copper Plate prices in the coming weeks. Market players are expected to closely monitor economic data and any new developments in the Copper Plate market that could affect market expectations.