LME/COMEX Copper Spread Widens Significantly in May

[SMM Shanghai Spot Copper] Looking ahead to tomorrow, copper prices continue to fluctuate at highs, and downstream purchasing sentiment remains subdued. Both buying and selling sentiment pulled back during the day, with spot discounts continuing to widen. According to SMM, downstream orders continued to decline from the previous day, with procurement driven mainly by rigid demand and limited willingness to chase higher prices. In terms of market structure, the inter-month Contango price spread between futures contracts remained in the range of 90-20 yuan/mt. As the 05 contract delivery date approaches, suppliers are increasingly willing to ship to delivery warehouse, and the delivery logic is expected to provide bottom support for spot discounts, limiting further significant downside. Overall, Shanghai spot copper prices against the SHFE copper 2605 contract are expected to remain at a discount tomorrow, with a generally weak tone but limited downside room.