Copper Plate Prices Rise in Asia and Europe Amid Supply Concerns and Fed Rate Cut

In the week ending 20^th September, the prices of Copper Plate in the Asian and European market increased because of supply disruptions and FED’s rate cut.  Additionally, major collaborations in Europe have further boosted the demand for Copper Plates in the region.

China, a key player in the copper market, witnessed a 0.6% increase in Copper Plate prices. This rise was primarily attributed to the Fed's decision to cut interest rates by 50 basis points, a move that typically boosts commodity prices. The Chinese market also faced tightening supply conditions, with domestic smelters reducing production and nationwide inventories reaching a post-Spring Festival low. This scenario has intensified concerns among downstream sectors about future supply availability. Adding to the supply worries, a fire at China's Daye copper smelter, one of the country's major facilities, led to a production stoppage. This incident not only disrupted the release of copper raw materials to the market but also contributed to a rebound in copper concentrates treatment charges.

In Europe, the Copper Plate market showed even stronger growth, with prices in Germany climbing by 0.9%. The Fed's rate cut is seen as a potential catalyst for global market shifts, potentially easing pressure on other central banks to maintain higher rates. The resulting weakness in the U.S. dollar is expected to provide further support for commodity prices, including Copper Plate. European markets are also seeing interesting developments in the copper industry. German copper giant Aurubis has partnered with Talga to develop an innovative process for producing battery-grade recycled graphite. This collaboration aligns with the European Union's Critical Raw Materials Act, which aims to derive 25% of annual strategic raw materials consumption from recycled sources by 2030. Such initiatives are likely to boost demand for Copper Plates in the region.

Early September witnessed a notable increase in global freight rates, mainly due to reduced capacity from major areas, causing the average spot rates from Asia-Pacific to Europe to rise consistently. Similarly, transpacific rates from Asia to North America have shown a steady increase on a weekly basis. Typhoons like Bebinca and Yagi underscore the ongoing risks to supply chains, prompting Shanghai to shut down ports and suspend transport to safeguard the area.

As the market enters a period of increased activity, these developments are expected to significantly impact Copper Plate prices. The combination of the approaching peak consumption season, the Fed's rate cut, and growing demand from downstream industries paints a positive outlook for the Copper Plate market. ChemAnalyst predicts that the Copper Plate market is poised for further growth, with prices expected to maintain their upward trajectory.