European Smelters Cut Purchases and Look Abroad

[SMM Shanghai Spot Copper] Copper prices rose from yesterday, but both buying and selling sentiment pulled back intraday, indicating that downstream acceptance of current price levels remained limited. In terms of market structure, under the current price spread between futures contracts structure, suppliers showed strong willingness to sell, with some offloading cargo, driving overall spot discounts down rapidly, while downstream willingness to make counteroffers was relatively evident. Entering the second trading session, after premiums were cut further, market transactions improved somewhat, but downstream procurement remained generally cautious, mainly focused on restocking on dips, with insufficient willingness to chase higher prices. Overall, amid the tug-of-war between suppliers actively selling and downstream buyers purchasing cautiously, Shanghai spot copper discounts were expected to remain under pressure tomorrow.

Spot #1 copper cathode in North China was quoted at discounts of 110-50 yuan/mt against the front-month contract today, with the average quote down 50 yuan/mt from the previous trading day. The average transaction price was 93,960 yuan/mt, up 1,120 yuan/mt from the previous trading day.