Smelter Deliveries and Import Inflows Exert Inventory Buildup Pressure on Shanghai Spot Copper

[Shanghai Spot Copper] Looking ahead to tomorrow, the early-month procurement cycle is continuing, downstream demand is still being released, and both buying and selling sentiment have been rebounding, keeping market trading activity relatively brisk. On the supplier side, after low-priced cargoes were rapidly absorbed, discounted cargoes became hard to find in the market, and suppliers developed a stronger willingness to hold prices firm. Buyers’ parity bids could not be executed. Due to scarce availability, premiums for high-quality copper held at the high level of 80-100 yuan/mt, providing support to overall premiums. On the inventory front, SMM data showed that social inventory in the Shanghai region recorded 126,500 mt, down 7,700 mt WoW from Monday; in the Jiangsu region, social inventory recorded 36,200 mt, down 5,000 mt WoW from Monday, with both regions showing a destocking trend. Overall, driven by the confluence of early-month demand release, suppliers holding prices firm, and inventory destocking, spot Shanghai copper against the SHFE 2607 contract is expected to remain at a premium tomorrow, maintaining an overall strong trend.