Data: SHFE, DCE market movement (Mar 17)

[SMM Shanghai Spot Copper] Looking ahead to the post-holiday period, demand side, enterprises are still primarily making just-in-time procurement, and demand is unlikely to see significant increases after the holiday. In addition, some downstream processing enterprises prefer to purchase directly from smelters to ensure bill compliance, diverting some spot demand from the trading market. Supply side, first, diesel shortages in Africa have hindered transportation and logistics, delaying the pace of imported cargo arrivals at ports, resulting in tight imported copper supply in the short term; second, according to SMM, five smelters in China are expected to enter maintenance in May, which will also reduce domestic spot copper circulation. Overall, against the backdrop of tightened spot circulation caused by hindered imports and domestic maintenance, suppliers have a strong willingness to hold prices firm, and Shanghai spot copper premiums are expected to hold up well after the holiday.

【SMM Copper Inventory Update】Social inventory of copper cathode in China's major regions continued the destocking trend ahead of the Labour Day holiday. Recently, arrivals of imported copper pulled back somewhat, while domestic shipments remained stable overall. On the demand side, pre-holiday rigid restocking demand provided support, driving inventory steadily lower.