High Price Spread Double Suppression, End-Users Wait and See as Trading Turns Light [SMM North China Spot Copper Cathode Weekly Review]

       In North China, as of Thursday this week, spot copper cathode was quoted at a discount of 130-50 yuan/mt, with an average discount of 90 yuan/mt, down 210 yuan/mt WoW. This week, futures continued to shoot up, and the price spread between futures contracts gradually widened, creating a double suppression from high copper prices and the spread. During the week, spot copper cathode in North China shifted from a premium to a discount, with suppliers' overall willingness to sell rising in the early period but easing near the delivery date. Downstream fear of high prices remained strong, with only a small amount of just-in-time buying at lows, while most participants stayed on the sidelines awaiting delivery. Market acceptance was weak, and trading activity continued to weaken. Looking ahead, wild swings in copper prices will continue to suppress end-user purchasing sentiment, and spot copper cathode in North China is expected to remain dominated by just-in-time buying next week, with market trading staying sluggish.