Off-Season Persists, Brass Billet Operating Rate Continues to Edge Down

[SMM Shanghai Spot Copper] Looking ahead to next week, with delivery approaching, Shanghai spot copper prices continue to rise, and the backwardation spread between nearby and next-month contracts shows signs of further widening. Some suppliers face the need to roll positions, which may drive an increase in low-priced available cargoes, exerting some pressure on spot premiums. Intraday, ahead of the weekend, some downstream buyers made just-in-time procurement, while some enterprises had demand for invoices. Market transactions improved from yesterday, and although suppliers still lowered their offers, the overall price reduction was limited. Supply side, currently available cargoes have not become significantly looser, and the circulation of some brands is limited, providing some support to the downside of premiums. Overall, against the backdrop of position rolling pressure near delivery, widening price spreads between futures contracts, and just-in-time procurement by downstream buyers, Shanghai spot copper prices against the SHFE 2608 contract are expected to trade at a discount next week. The discount magnitude will depend on the movement of the spread and the flow of market supply.