Downstream orders surge and supply tightens, spot premiums rise sharply after contract rollover

Published: Oct 16, 2026 09:52 (GMT+8)

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SMM, October 16: After the SHFE copper contract rollover, futures pulled back slightly. Intraday orders from downstream copper processing enterprises increased, while available supply in the market remained tight and suppliers showed strong sentiment to hold back from selling, jointly driving spot premiums sharply higher. In Shanghai, standard-quality copper against the SHFE 2611 contract was mostly quoted at premiums of 800–850 yuan/mt, with the current backwardation between the front and next month contracts running at 660–690 yuan/mt.

The delivery volume for the SHFE 2610 copper contract was 4,895 lots. Attention should be paid to the pace at which delivered warrants flow into the spot market. If delivered cargoes are released in a concentrated manner, the tightness in available supply may ease, and spot premiums will face pullback pressure.

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