Suppliers Cut Prices for Shipments, Spot Premiums Edged Down [SMM North China Spot Copper]

Looking ahead to tomorrow's Shanghai copper spot market, on the demand side, night session copper prices rose, reducing downstream acceptance and pulling back intraday buying – a sign of price sensitivity. The front-month contango widened to 180-110 yuan/t, encouraging holders to firm up offers and limiting spot discounts. However, consumption in northern regions (Gansu, Shanxi, Henan) softened, with some smelters reshipping to Shanghai, pointing to higher east China supply ahead. SMM data shows Shanghai social inventories at 188.0kt, down 2.8kt w/w but destocking slowed notably, reflecting weak buying appetite at current prices. Overall, with contango support balanced against potential supply inflows, spot quotes against the 2605 contract are expected to hold steady.

[SMM Shanghai Spot Copper] Demand side, SHFE copper prices rose during the night session yesterday, and downstream enterprises' acceptance of current price levels declined notably. Intraday purchasing sentiment pulled back, reflecting the suppressive effect of high prices on demand. Market structure side, the inter-month Contango price spread between futures contracts widened to 180-110 yuan/mt. Suppliers showed some sentiment to hold prices firm, with low willingness to sell, providing certain support for spot discounts. Regional supply side, consumption momentum weakened in north China regions such as Gansu, Shanxi, and Henan, with some smelters resuming shipments to the Shanghai area. Available spot cargo in the east China market may increase going forward, posing potential downward pressure on spot discounts. Inventory side, SMM data showed that social inventory in the Shanghai area was recorded at 188,000 mt, down 2,800 mt WoW. The destocking pace slowed down significantly, indicating that current copper prices had weak appeal to downstream enterprises. Overall, amid the interplay between support from the price spread between futures contracts structure and expectations of cargo flowing back from the north, spot prices against the SHFE copper 2605 contract are expected to remain at current levels tomorrow.

[SMM North China Copper Cathode Spot Market] Copper prices consolidated at highs. Downstream consumption of copper cathode in northern China remained sluggish overall. As the month-end period approached, suppliers faced gradually increasing shipment pressure, and spot premiums continued to weaken throughout the week.