Copper Rod Prices in Asia Edge Higher on Improved Economic Outlook and Industry Developments

In the week ending August 16^th, the Copper Rod market demonstrated resilience with notable price increases across Asia, driven by a combination of economic factors and industry-specific developments.

China, a key player in the global copper market, witnessed a slight uptick of 0.6% in Copper Rod prices. This increase was part of a broader trend of rising metal prices in the country, attributed to easing concerns over US economic growth and declining copper inventories at the Shanghai Futures Exchange (SHFE). The reduction in stockpiles of Copper Rod, particularly significant in Shanghai over the week, coupled with a noticeable rebound in downstream consumption, led to strong buying sentiment and increased willingness among sellers to trade. Adding to the positive outlook, the Phase II reconstruction and expansion project of the Julong Copper Mine received approval from relevant departments. Set for trial production in the first quarter of 2026, the project is poised to make a significant impact on the Copper Rod industry. This development will establish the Julong Copper Mine as the largest individual copper mine in terms of mining and processing capacity in China and globally for operations commencing this century.

In South Korea, the copper market has seen favorable developments, with a slight 0.4% rise in Copper Rod prices. The nation's economy is demonstrating recovery signals, fueled by rising domestic demand and export activities. With semiconductors leading the charge, July represented the tenth month in a row of export increases compared to the previous year. The upward trajectory continued into August, with the initial ten days recording substantial export growth year-on-year, thanks to semiconductors and the automotive sector, which in turn boosted the demand for Copper Rods. Additionally, Korea Zinc, a major player in the country's metal industry, achieved a milestone as its copper products earned Societe Generale de Surveillance (SGS) certification. Notably, all copper products including Copper Rod from its copper production facilities at the Onsan Smelter will be produced using secondary materials obtained through resource recycling or scrap, significantly reducing carbon emissions throughout the production process.

Globally, Copper Rod prices saw a resurgence as the largest copper mine on the planet, located at BHP's Escondida in Chile, witnessed the cessation of strikes. This development came after the workers, represented by their union, accepted a new wage agreement. The strike, which commenced last week, concluded with the company offering a proposal that met the workers' approval, a fact verified by a statement from the leading union.

Overall, while the immediate outlook appears cautiously optimistic, the Copper Rod market remains susceptible to global economic trends and industry-specific developments. Factors such as global economic uncertainties, fluctuations in demand from key sectors like construction, automobile and electronics, and any unforeseen supply disruptions could impact Copper Rod prices.