High Copper Prices Squeeze Shanghai Spot Market, Spot Discounts to Persist Amid Supply Pressures

Published: Feb 3, 2026 14:11

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Looking ahead, the Shanghai spot copper market is anticipated to stay under downward pressure. Following yesterday's price drop, some northern suppliers diverted material to delivery warehouses, while downstream procurement increased, tightening regional supply. This has prompted inquiries from downstream buyers in Henan and Shandong into the Shanghai market, potentially offering near-term regional support in East China. However, cargoes locked at favorable import price ratios earlier are due to arrive post-holiday, boosting domestic supply. Meanwhile, a slightly widened nearby contango and continued supplier deliveries to warehouses will sustain pressure on spot liquidity. Even if lower prices spur some bargain-hunting, spot discounts are likely to persist tomorrow.

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