Copper Supply to Rise, Spot Discounts Under Pressure Amid Supply-Demand Mismatch
Looking ahead to next week, SHFE copper spot supply is set to increase, with Peruvian and Japanese cargoes visible intraday. The contango spread between adjacent months widened slightly, and persistent willingness to deliver to warehouses further diverts spot liquidity. Although some suppliers hold prices firm, expectations of warrant outflows pressure spot premiums/discounts. Downstream production has not fully resumed; procurement sentiment is cautious but recovering. Amid supply-demand mismatch, social inventory is expected to continue building. Overall, supply pressure will keep spot discounts under pressure next week.