On Monday last week, the SHFE 2307 copper contract was delivered, with futures copper prices falling below 69,000 yuan/mt, resulting in cautious downstream procurement. SHFE 2308 copper contract prices stopped falling and stabilized, and the spot premium against the SHFE August contract dropped from 200 yuan/mt to around 100 yuan/mt, attracting some downstream market participants to enter the market for procurement.
There was no concentrated arrivals of imported copper during the week, and with the warrants on SHFE being offered for sale, copper inventory in Shanghai decreased by 5,300 mt to 79,400 mt. The BACK between the SHFE front-month and next-month contracts narrowed from 200 yuan/mt to 130 yuan/mt.
The spot market showed divergent performance at the end of the week, with some spot merchants maintaining a firm pricing, while others were not optimistic about the future consumption and sold at a lower price. This week, some traders may push for lower prices, and the spot quotes are expected to open high and trend lower.
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