Operating Rate at Chinese Copper Wire Rod Plants to Rise in March

[SMM North China Copper Cathode Spot Market] During the week, copper prices fluctuated and downstream buyers maintained a wait-and-see sentiment. Consumption demand in the North China copper cathode market slowed compared with mid-to-late March, and spot premiums came under pressure, falling back below spot premium levels in east China.

[SMM Shanghai Spot Copper] Looking ahead to tomorrow, the Shanghai spot copper market is expected to remain in the doldrums. Supply side, as the import window has opened, expectations for subsequent inflows of cargo from outside China have strengthened, and some imported cargo circulated in the market during the day, continuously pressuring spot discounts. Meanwhile, according to SMM, some smelters had a need to reduce inventory ahead of the holiday and intended to accelerate the pace of shipments, further increasing circulation pressure in the spot market. Demand side, downstream enterprises still showed limited acceptance of current price levels, with overall procurement still dominated by just-in-time procurement and insufficient willingness to chase higher prices. However, as the Qingming Festival approaches, some downstream enterprises may have pre-holiday stockpiling demand, which could provide some support to the spot market, but is expected to be insufficient to reverse the overall weak supply-demand pattern. Overall, Shanghai spot copper prices against the 2604 contract are expected to remain at the current level tomorrow.

In North China today, spot prices for #1 copper cathode against the front-month contract were reported at an average discount of 100 yuan/mt, down 10 yuan/mt from the previous trading day, while the average transaction price was 95,910 yuan/mt, down 915 yuan/mt from the previous trading day.