Three-month copper on the London Metal Exchange (LME) fell 0.7% to USD 9,534.50 per metric ton by 0436 GMT, while the most-traded August copper contract on the Shanghai Futures Exchange (SHFE) rose 0.1% to 78,200 yuan (USD 10,759.94) a ton.
Inventories of copper in LME-approved warehouses climbed to 180,125 tons on June 27, from around 104,000 tons in mid May.
However, as prices dipped, physical copper demand improved.
"Most semi producers have an annual target so they need to increase the total purchase volume in the third quarter when prices fall," said CRU copper analyst He Tianyu.
LME copper price hit a record high above USD 11,100 in May but has fallen 14% since. In June alone, the contract fell 4.4%, the biggest monthly loss since August 2023.
Copper consumption from wire rod producers fell at double digits in the second quarter year-on-year, the analyst said.
Most wire rod producers sign their contract based on the previous monthly or weekly prices, so their consumption will improve if prices remain relatively stable, he added.
The Yangshan copper discount has tightened to USD 7 a ton on June 28, from as low as a USD 20-discount in May, indicating improving appetite to import copper into China.
However, prices are likely to remain under pressure in the third quarter as Chinese smelters will likely boost supply after they completed their traditional maintenance season, CRU's He said.
Demand from the copper tube sector will also be seasonally weak in the third quarter, the analyst added.
LME zinc declined 0.5% to USD 2,922 a ton, lead eased 0.5% to USD 2,213 a ton, while tin rose 0.8% to USD 33,010, aluminium dipped 0.3% to USD 2,518 and nickel edged up 0.2% at USD 17,320.
SHFE zinc fell 0.1% to 24,385 yuan a ton, aluminium edged up 0.2% to 20,290, while nickel rose 1.1% to 136,870 yuan, lead advanced 1.7% to 19,680 yuan and tin climbed 1.7% to 275,210 yuan.
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