Shanghai-bonded copper stocks extend gains on week

Tomorrow, the spot discount for Shanghai copper is expected to steadily narrow. The C1-C2 spread continues to tighten, further weakening holders' willingness to deliver to warehouses. Supply remains ample due to consistent arrivals of domestic and price-locked imported copper, alongside high social inventories. On the demand side, ongoing operational resumption and lower futures prices have boosted dip-buying interest, supporting the discount. Overall, spot trading activity is expected to remain stable.

[SMM Shanghai Spot Copper] Looking ahead to tomorrow, Shanghai spot copper discounts are expected to continue a steady recovery trend. From the market structure perspective, the price spread between futures contracts for the next-month and C contracts continues to narrow slightly, and suppliers’ willingness to ship to delivery warehouses continues to decline. Supply side, domestic copper and previously price-locked imported cargoes continue to arrive, and with social inventory at a high level, overall circulating supply in the market remains ample. Demand side, downstream enterprises continue to advance work and production resumptions, and with SHFE copper futures prices having declined somewhat recently, downstream purchase willingness to buy the dip has increased; order activity has risen, providing support for spot discounts. Overall, Shanghai spot copper is expected to maintain stable trading activity tomorrow.