Glencore Backs $1.4B Bid for 40% Stake in Eurasian Resources Group

【SMM Copper Cathode Rod Flash】After copper prices pulled back, enterprises showed a relatively strong willingness to restock raw materials, but the restocking pace lagged production consumption, and raw material inventory pulled back MoM; downstream pick-up of goods accelerated, and enterprise production struggled to match delivery demand, accelerating the drawdown of finished product inventories, with inventory also down MoM.

【SMM Copper Cathode Rod Flash】Domestic copper cathode rod enterprises basically fully resumed operations, with this week’s operating rate at 62.47%, a sharp rebound WoW. After copper prices pulled back, as substitution by secondary copper rod weakened and downstream cable and enamelled wire sectors conducted concentrated restocking, orders increased significantly and inventory drawdowns accelerated. The operating rate was expected to further rise to 70.46% next week.

Looking ahead to next week, spot discounts for Shanghai spot copper are expected to continue a steady recovery trend. From the market structure perspective, the price spread between futures contracts for the next-month C contract remains around 300 yuan/mt, prompting suppliers to hold prices firm and withhold sales; meanwhile, the downward shift in the center of copper prices has effectively stimulated downstream purchase willingness, driving a notable rise in spot premiums. Supply side, domestically produced copper and previously price-locked imported cargoes continue to arrive, and with social inventory at elevated levels, overall circulating supply in the market remains ample.